Major Projects Canberra City to Woden Light Rail: Stage 2A City to Commonwealth Park Business Case Prepared by: MAJOR PROJECTS CANBERRA ACT Government Callam Street Offices Woden Author: Major Projects Canberra Filename: C2W Stage 2A Light Rail Business Case Version / Date: August 2019
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Major Projects Canberra
City to Woden Light Rail: Stage 2A City to
Commonwealth Park Business Case
Prepared by:
MAJOR PROJECTS CANBERRA
ACT Government
Callam Street Offices
Woden
Author: Major Projects Canberra
Filename: C2W Stage 2A Light Rail Business Case
Version / Date: August 2019
2
Document sign-off sheet
Contact officers
Name Role Directorate Date Signature
[name] Contact Officer Major Projects Canberra,
Requesting Directorate
[dated] [signed]
[name] Reviewing Officer Chief Minister, Treasury and
Economic Development
Directorate
[dated] [signed]
[name] Reviewing Officer Chief Minister, Treasury and
Economic Development
Directorate
[dated] [signed]
Sign-offs
Name Role Requesting Directorate Date Signature
[name] Chief Projects Officer Major Projects Canberra,
Requesting Directorate
[dated] [signed]
[name] Director General Transport Canberra and City
Services, Requesting Directorate
[dated] [signed]
[name] Under Treasurer Chief Minister, Treasury and
Economic Development
Directorate
[dated] [signed]
Other sign-offs are contained at the conclusion of:
• Chapter 5.0 (Design and Output Specifications); and
2.4 Prior activities and studies ............................................................................................................... 34
2.5 Related projects ............................................................................................................................... 38
2.6 Summary of consultation undertaken to-date .................................................................................. 42
2.7 Other important notes ...................................................................................................................... 43
3.0 Need for investment ........................................................................................................... 44
3.1 Vision for Canberra .......................................................................................................................... 44
5.2 Place making ................................................................................................................................... 87
5.3 Light rail stops and walkability ......................................................................................................... 89
5.4 Operating hours and scheduling ...................................................................................................... 92
The ACT Government is progressively developing the Canberra light rail network to improve transport accessibility
by providing more convenient, reliable and high-quality public transport services that better connect Canberrans,
while supporting opportunities for urban renewal across the Territory.
With the completion of the network’s initial stage
between Gungahlin and the City in 2019, the ACT
Government is committed to constructing Stage 2,
which will extend light rail south from the City to
Woden, creating a north-south public transport
spine for Canberra.
Stage 2 is planned to be delivered in two
components as outlined in Figure 1-1 – Stage 2A
between the City and Commonwealth Park on
Commonwealth Avenue and Stage 2B between
Commonwealth Park and Woden.
Stage 2A of City to Woden Light Rail to
Commonwealth Park (the Project) as outlined in
this Business Case entails:
1. The design and construction of light rail
between the City and Commonwealth
Park (on Commonwealth Avenue), with
associated stops, track, structures,
depot, road, signalling, preparatory and
other works required for its completion;
and
2. The ongoing operation and maintenance
of that light rail system.
This Business Case has been developed on the
basis that light rail is recommended to be delivered between the City and Woden as soon as possible.
Recognising, however, that complex Commonwealth planning approval processes exist which will take some time
to resolve, this Business Case recommends that the procurement and delivery of Stage 2A, the first component of
the route from the City to Commonwealth Park (on Commonwealth Avenue) commence upon approval of this
Business Case. It is expected that this first component, while still technically complex, and also subject to
Commonwealth Government planning approvals, will be capable of procurement and the commencement of
delivery ahead of Stage 2B (from Commonwealth Park to Woden) receiving relevant approvals.
Importantly, even in a worst-case scenario where Commonwealth approvals are not obtained for Stage 2B, the
Project stands on its own merits and represents an important expansion of Canberra’s light rail network.
In preparing this Business Case, Major Projects Canberra (and before that Transport Canberra and City Services)
has taken account of the ACT Government’s long-term plan to develop a city-wide light rail network that will shape
the future development of the Territory and provide an integrated public transport network for Canberrans.
The Project will improve public transport accessibility and transport choice for Canberrans, encouraging new users
and providing an attractive, reliable and frequent public transport option. Together with City to Gungahlin Light Rail
and future network stages, including the completion of Stage 2B to Woden, the Project seeks to give greater
Figure 1-1: City to Woden Light Rail (Stage 2A and 2B)
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choice for all Canberrans and to change how we move around Canberra to create a more sustainable, inclusive
and competitive city.
The Project will also facilitate urban renewal and assist the ACT Government in achieving its land use and
development objectives, in the first instance in the Acton Waterfront, City Hill and City West, and then to Woden,
supporting revitalisation along the corridor and particularly in the Woden Town Centre.
1.2 Purpose and recommendation
The purpose of this Business Case is to (i) seek approval to enter into a procurement process and undertake
associated activities for the delivery of the Project, and (ii) provide an analysis of the options, benefits, risks and
procurement approach for the Project. The findings will support Cabinet in its investment deliberations regarding
the Project.
This Business Case recommends that the ACT Government:
1. Approve the Project – as depicted in Figure 1-2 – to extend light rail from the existing terminus at Alinga Street, south along Northbourne Avenue, around the western side of London Circuit to Commonwealth Avenue, terminating at Commonwealth Park, as the first component of light rail to be delivered between the City and Woden;
2. Continue with planning, design and other associated activities for the “State Circle East” alignment as the preferred route to connect light rail to Woden, with the alignment extending from the terminus at Commonwealth Park, across Lake Burley Griffin and onward to State Circle where it will travel around the eastern side of Parliament House until it reaches Adelaide Avenue, travelling south to Woden and terminating at Callam Street at a new bus/light rail interchange;
3. Proceed with procurement for the design, construction and operation of the Project on the basis of a sole source procurement with the Canberra Metro consortium.
and
4. Implement all other associated matters as outlined in this Business Case.
Figure 1-2: City to Commonwealth Park (Stage 2A) route alignment
1.3 Policy context
The Canberra light rail network represents a key infrastructure investment that will shape how Canberra moves
and grows over the coming decades. It is essential that each stage is developed in accordance with the ACT
Government’s broader vision for the city. In this regard, this Business Case has been prepared in the context of
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land use and transport policies developed by both the ACT and Commonwealth Governments, and in consultation
with other ACT Government directorates.
Transport policy
The ACT Government is delivering a light rail network for Canberra that will contribute to the development of a
modern, sustainable and integrated public transport system for the Territory. The Business Case reflects the goals
and ambitions of various ACT Government directorates policy documents, including:
• Moving Canberra 2019-2045 (currently draft);
• Light Rail Network Plan; and
• Public Transport Improvement Plan.
Land use and city renewal policy
Light rail will play a key land use and planning role for Canberra, stimulating sustainable urban renewal and more
efficient land use across the Territory. This Business Case has considered the following land use and city renewal
policy documents:
• Territory Plan;
• City Plan;
• National Capital Plan (NCP);
• ACT Planning Strategy 2018;
• City Renewal Authority 2025 Strategic Plan; and
• Canberra: A Statement of Ambition.
1.4 Prior activities
This Business Case follows and considers previous activities, analyses and studies undertaken to progress the
development of a light rail network for Canberra.
Since the ACT Government’s 2016 announcement of City to Woden Light Rail as the preferred next corridor of the
network, it has undertaken a series of activities to further define and develop the Project including planning,
design, technical, financial and economic analysis and community and stakeholder consultation.
In 2017, the ACT Government undertook a range of scoping activities to understand the key considerations, risks,
opportunities and objectives for the development of light rail to Woden. This work led to a range of options being
explored and offered for community and stakeholder consultation.
This analysis allowed the ACT Government to identify the core alignment and engineering requirements, as well
as the key challenges to delivering a solution that maximises the outcomes for the corridor, the network and the
Territory. These activities informed the options analysis for the City to Woden Light Rail project (see Section 1.6).
In 2018 the Commonwealth Joint Standing Committee on the National Capital and External Territories (JSC)
undertook an inquiry into light rail between the City and Woden (the ‘JSC inquiry’), with the following terms of
reference:
1. The relevant Parliamentary approval processes for works within the Parliamentary Zone;
2. The roles of the National Capital Authority (NCA) and the Commonwealth Government, and the associated approval processes;
3. Possible impacts on the Parliamentary Zone and Parliamentary precincts, including any impacts on the heritage values and national importance of the Parliamentary Zone and our national capital;
4. The identification of matters that may be of concern prior to formal Parliamentary or Commonwealth Government consideration of the project between the City and Woden; and
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5. Any other relevant matter the Committee wishes to examine.
While the primary focus of the JSC inquiry was on the section of the route alignment that traverses the
Parliamentary Zone (which is within the Stage 2B alignment), the JSC inquiry has informed the development of the
Project in a number of ways, particularly the staged delivery strategy.
As previously outlined, this Business Case assesses the delivery of light rail to Commonwealth Park (on
Commonwealth Avenue, on the north side of Lake Burley Griffin) as the initial component of a light rail line which is
proposed to ultimately extend to Woden. The JSC inquiry highlighted the complexities of the Commonwealth
approvals process and included a requirement for future JSC inquiries in relation to the section of the alignment
that traverses the Parliamentary Zone. The proposed initial delivery of Stage 2A (as recommended in this
Business Case) is in recognition of the likely time and complexity involved in achieving planning approval for Stage
2B.
The JSC recommendations, agreed to in principle by the Commonwealth Government, and NCA planning regime
may have material consequential impacts, specifically in relation to wire-free requirements, visual amenity and
urban design outcomes. These are outlined in Chapter 6.0 of this Business Case.
In 2019, consultation continued with the Commonwealth Government, including discussions with the Department
of Environment and Energy and the NCA regarding route alignments and Environment Protection and Biodiversity
Conservation (EPBC) Referrals were lodged on the basis of the staged approach outlined in this Business Case.
1.5 Need for Investment
Canberra is one of Australia’s most liveable cities. For the Territory to remain competitive into the future and to
continue to provide the high-quality lifestyle Canberrans enjoy, the Territory needs to make strategic policy
decisions and investments now to address the current and future challenges that Canberra is experiencing and will
continue to face. These investments will also contribute to achieving local and national policy priorities relating to
employment, productivity, housing affordability and economic diversification.
The Project will deliver a host of benefits and addresses the following key challenges:
• The need to invest in Canberra’s liveability and economic connections to attract and retain people and
businesses. With significant infrastructure investments occurring in other Australian capital cities, the
Territory should invest now to ensure Canberra remains one of Australia’s and the world’s most liveable
cities;
• The need for a more efficient use of land and infrastructure in Canberra. Canberra is low density when
compared to other Australian cities, which will lead to additional expenditure on power and utilities, roads
and other public infrastructure such as schools and hospitals which may be reduced through increased
densification. The Project will support and optimise planned investment and urban renewal in the city
centre, Acton Waterfront and City Hill by providing improved public transport accessibility and enhancing
urban amenity. Completion of Stage 2B to Woden will support the revitalisation of the Woden Town
Centre, as well as planned developments in Curtin and elsewhere along the alignment;
• The need to continue improvements in the utilisation of Canberra’s public transport system. There exists
an opportunity to further enhance the utilisation of public transport in Canberra. A failure to continue to
improve public transport utilisation is unsustainable for a growing city in the long term. Experience in other
cities and the initial patronage of City to Gungahlin light rail are evidence that light rail is an attractive
transport option, offering a different (but complementary) experience to bus networks with a
commensurate increase in public transport patronage; and
• The need to reduce car dependency in Canberra. Car use in Canberra is high and this, combined with
population growth, will lead to a congested road network with negative social, economic and
environmental impacts, such as noise pollution and slower travel times.
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Addressing these challenges will help achieve the ACT Government’s vision for Canberra as a more connected,
compact and competitive city. It is sensible for Canberra to make these investments now so as to avoid the acute
congestion problems and increased construction costs that arise from delays to such investments (as has been
experienced in other larger Australian cities).
1.6 Options Analysis
City to Woden Light Rail
This Business Case is consistent with priorities previously identified in the ACT Government’s Light Rail Network
Plan1 to:
• Ensure the light rail network connects to other modes of transport and employment hubs;
• Invest in corridors where there is a future need; and
• Shape the growth of the city.
Stage 2 of Canberra light rail between the City to Woden was identified as a high priority due to its capacity to
connect key residential, cultural, commercial and employment centres across the city using an integrated public
transport network. While the City to Woden route alignment has technical and planning challenges, its strategic
significance to the city in connecting north and south Canberra means that it is a crucial part of the network. It will
contribute to Canberra’s connected, integrated public transport network creating a north-south light rail spine and
has the potential to support urban renewal, especially in Woden.
As the design and technical analysis for the City to Woden corridor has developed, various options for the full
route have been considered and refined. Two route alignment options – City to Woden via Parkes and Barton and
City to Woden via Capital Circle – were considered in early
design and community consultation in 2017. One of these
options – City to Woden via Parkes and Barton – was
previously recommended by the ACT Government in its
submission to the JSC inquiry based upon circumstances then
existing.
Following the JSC inquiry and with further guidance having
been provided by the Commonwealth Government, together
with further technical analysis and deliberations by the ACT
Government, three route alignment options between the City
and Woden were considered:
1. Option 1: City to Woden via State Circle (East);
2. Option 2: City to Woden via Capital Circle; and
3. Option 3: City to Woden via Parkes/Barton.
A comparative assessment of the merits of these route
alignments when evaluated against a series of criteria
(connectivity and urban renewal, planning and technical and
cost and risk contingency) has resulted in a recommendation
that light rail be constructed in the corridor between the City
and Woden via State Circle East as outlined in Figure 1-3.
1 Transport Canberra, ‘Light Rail Network’, https://www.tccs.act.gov.au/__data/assets/pdf_file/0011/984638/Transport-Canberra-Light-Rail-Network.PDF
Figure 1-3: City to Woden via State Circle East (Option 1)
This alignment is preferred as it provides a balanced solution that supports the achievement of ACT Government
objectives and is likely to have the best chance of ultimately obtaining all necessary planning approvals,
particularly in relation to Stage 2B.
Staged delivery
Given the complex planning approvals processes required to deliver light rail from the City to Woden – particularly
in relation to light rail through the Parliamentary Zone – analysis was undertaken to determine the most
appropriate manner to deliver light rail in the corridor. Two options have been considered:
• Option 1: a staged delivery approach, with the initial component to be delivered from the existing light rail
terminus at Alinga Street to Commonwealth Park (on Commonwealth Avenue, on the northern side of
Lake Burley Griffin). That ‘Stage 2A’ component is the subject of this Business Case. ‘Stage 2B’ from
Commonwealth Park to Woden through the Parliamentary Zone would then be delivered as a future
component of the City to Woden corridor once Commonwealth planning approvals are received and in
accordance with a future business case.
The proposed initial component of the corridor to Commonwealth Park was delineated on the basis that it
allows planning complexities associated with the Parliamentary Zone and the Commonwealth Avenue
Bridge to be addressed as part of the ongoing Stage 2B planning processes; and
• Option 2: a single stage delivery approach such that City to Woden Light Rail is constructed in one
continuous build.
A staged delivery approach (Option 1) is preferred as it:
• Provides improved transport connectivity between the City and those areas on the northern side of Lake
Burley Griffin sooner than otherwise would be possible under a single stage approach. This is due to
planning complexities and associated timeframes related to the construction of light rail in the
Commonwealth Avenue Bridge area and the Parliamentary Zone;
• Supports the optimisation of urban renewal activities planned or underway in City Hill, City West and the
Acton Waterfront by providing a frequent and high-quality public transport solution to Commonwealth
Park. In this respect, the Project stands on its own merits even in a worst-case scenario in which
Commonwealth planning approvals are not provided for Stage 2B;
• Enables valuable corporate knowledge garnered by both the ACT Government and Canberra Metro
during the delivery of City to Gungahlin Light Rail to be maintained and applied to the City to Woden
corridor. Both the ACT Government and Canberra Metro teams can productively progress the delivery of
light rail while Stage 2B planning approvals are sought;
• Assists in retaining local skills and capabilities developed during the construction of City to Gungahlin
Light Rail, supporting the economic diversification objectives outlined in Canberra: A Statement of
Ambition; and
• Demonstrates the ACT Government’s commitment to delivering light rail in full City to Woden corridor.
Although the staged delivery approach is recommended, it does have a number of potential disadvantages. These
include:
• Potential construction inefficiencies from delivering light rail in the corridor over two stages. However, both
Stage 2A and Stage 2B will be complex projects. Delivering light rail in separate components may assist
the ACT Government in better managing Project risks with potential off-setting financial benefits;
• Potentially longer construction disruption than would otherwise be the case. The staged delivery approach
will, however, limit disruption to each stage rather than across the entirety of the corridor. In addition,
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combining the delivery of Stage 2A with the delivery of the London Circuit / Commonwealth Avenue
project will minimise disruption from these two projects; and
• The risk that the Commonwealth Government does not ultimately approve Stage 2B or agree reasonable
terms that would allow Stage 2B to proceed. Offsetting this, Stage 2A stands on its own merits even if
there is a worst-case outcome in relation to Commonwealth approvals.
On balance, the benefits of a staged delivery approach are considered to outweigh its potential disadvantages and
as such, this Business Case recommends that City to Woden Light Rail proceed in this manner. Consequently,
this document assesses the benefits, risks, costs and delivery model options for City to Commonwealth Park Light
Rail (Stage 2A) as the initial component of a light rail line to Woden.
Concurrently, it is proposed that the ACT Government will continue design, planning and approval activities for
Stage 2B to Woden using the State Circle East alignment, noting the complexities that are associated with
constructing light rail through the Parliamentary Zone.
1.7 Project Scope
Light Rail Stage 2: City to Woden
As outlined in Section 1.6, City to Woden Light Rail will be delivered in two stages: Stage 2A to Commonwealth
Park and Stage 2B to Woden (refer Figure 1-1 above). City to Woden Light Rail will provide improved public
transport choice for Canberrans, while also supporting the revitalisation of suburbs along the corridor to create a
more compact and connected City that promotes inclusivity, high quality spaces and more community-focused
neighbourhoods.
Key features of City to Woden Light Rail are outlined in Figure 1-4. These are subject to further technical and
operational analysis and design.
While the ACT Government is committed to completing the full City to Woden light rail alignment, the Project
scope outlined in this Business Case focuses on Stage 2A.
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Figure 1-4: Anticipated City to Woden Light Rail key features
Place making and customer experience
The Project will extend light rail from the current terminus at Alinga Street to Commonwealth Park, improving
public transport connectivity between those areas on the northern side of Lake Burley Griffin and the City.
In doing so, the Project will support revitalisation activities planned or underway in City Hill, City West and the
Acton Waterfront, with light rail carefully designed to improve urban amenity outcomes along the alignment.
Investment in light rail has demonstrated its potential to contribute to the creation of vibrant activity centres,
supporting urban renewal and creating attractive, people friendly places. It is anticipated that the Project will be no
exception, complementing planned mixed use developments and supporting the achievement of the ACT
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Government’s vision for Canberra as a connected and compact City.2 These benefits will grow as the ACT
Government completes Stage 2B to Woden, supporting the revitalisation of the Woden Town Centre and
connecting key employment, cultural, residential and commercial hubs with a high quality light rail network.
Figure 1-5 depicts the indicative stops on the proposed alignment, extending south from the existing Alinga Street
terminus. It should be noted that stop locations may change through the Project’s procurement phase as additional
planning and engineering works are undertaken.
Figure 1-5: Potential Project stops
The Project’s operations will be an extension of the City to Gungahlin Light Rail service and will therefore have the
same frequency. Light rail services currently operate with a frequency of at least 10 minutes on weekdays between
the core hours of 7am and 6pm, with 6 minute frequencies being provided in peak hours. Outside these hours on
weekdays and all day on Saturdays, Sundays and public holidays, the frequency is anticipated to be at least every
15 minutes.
Patronage and travel times
Transport modelling has been used to estimate the anticipated daily patronage for the route in 2026 and 2046. The
anticipated travel time and patronage numbers are outlined in Table 1-1. It should be noted that these patronage
figures were generated for the purposes of the economic analysis and initial technical design and as such are only
a forecast. Actual patronage figures may differ substantially from these estimates.
The early patronage of City to Gungahlin Light Rail, with more than one million boardings between the
commencement of operations in mid-April and mid-July 2019, indicates Canberrans willingness to use light rail
when it is available. The completion of the north-south spine between Gungahlin and Woden will connect more
communities with an attractive, reliable and affordable public transport choice.
Travel times in the table below are indicative and subject to further operational analysis and design.
2 ACT Government, ‘Canberra: A Statement of Ambition’, http://www.cmd.act.gov.au/__data/assets/pdf_file/0006/865482/Canberra-A-Statement-of-Ambition.pdf, 2016
The Project includes the construction of stops, track, structures, roads, signalling and other works, as well as
works to the existing Mitchell Depot, and the procurement of four additional Light Rail Vehicles (LRVs). The final
design of the Project is expected to be largely consistent with existing City to Gungahlin Light Rail designs to
ensure a high quality, coherent, customer-focused network.
The following figure provides a high-level overview of the capital works associated with the Project.
Figure 1-6: Proposed capital works
Key physical features of note for the Project include:
• Structures: It is assumed for the purposes of this Business Case that London Circuit is raised to meet
Commonwealth Avenue (with approval for those works being sought as part of a separate Business Case)
and a signalised intersection is formed. Light rail will traverse the intersection to connect to
Commonwealth Avenue. A new bridge for light rail will be constructed across Parkes Way in the
Commonwealth Avenue median (see Figure 1-7);
3 Wire-free operations (if required) and the raising of London Circuit may impact on the travel times outlined in this Business Case. Wire-free operations from Commonwealth Avenue to Kent Street would add in the order of 2 to 2.5 minutes to the journey time from the City to Woden
4 The patronage figure refers to the increase in light rail boardings that occur following the commencement of operations. Figures are rounded to the nearest hundred boardings
5 The patronage figure refers to the increase in light rail boardings that occur following the commencement of operations. Figures are rounded to the nearest hundred boardings
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Figure 1-7: Light rail bridge across Parkes Way (indicative)
• Light Rail Vehicles: The Project will require additional light rail vehicles (LRVs). LRVs are anticipated to
be of a similar design to the existing fleet that operates between the City and Gungahlin. The preferred
traction power system for the project is an overhead wire (OHW) system. LRVs will be procured on that
basis, which will provide the following advantages:
o A reduced travel time between the City and Woden in the order of 2 to 2.5 minutes;
o Reduced cost;
o Maintenance simplicity;
o Greater certainty of reliability; and
o A delay to the procurement of batteries / super capacitor technology. If wire-free operations are
required for subsequent parts of the light rail network, battery technology acquired at that time will
likely be further advanced.
However, JSC recommendations and NCA planning conditions may necessitate wire-free running for
sections of the Stage 2A route alignment, requiring LRVs have an on-board energy storage system. This
would also necessitate the 14 LRVs procured as part of the City to Gungahlin Light Rail project (which
were specified to enable wire-free running) to be modified to allow the whole fleet to be capable of end-to-
end running from Gungahlin to Commonwealth Park.
The exact number and type of LRVs to be procured will depend on:
o Negotiations with Canberra Metro and the cost of each LRV. The cost per LRV will vary
depending upon the total size of the production run, so it may be appropriate to purchase LRVs in
excess of the minimum needed for the Project (noting the intention to deliver Stage 2B in the
future);
o The final operating parameters of the Project, including any requirement for wire-free running
which could necessitate an additional two LRVs due to extended journey times; and
o Program implications, production run timing and service level implications on City to Gungahlin
Light Rail should wire-free running (and therefore retrofitting of the existing fleet with battery
technology) be required.
For the purposes of this Business Case, it is expected that a minimum of four LRVs will be required for the
Project and on-board energy storage systems are not required. Section 1.8 provides an indication of the
additional cost that could be expected if wire-free running is required, noting the JSC and NCA’s previous
position in this regard.
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• Mitchell Depot: the City to Gungahlin Light Rail maintenance and stabling facility and depot in Sandford
Street, Mitchell is of sufficient size to accommodate the additional four LRVs to operate a north-south light
rail route from Gungahlin to Commonwealth Park. The existing facilities were designed with expansion of
the network in mind. Minimal works are required within the existing depot site, including a new stabling
road to accommodate the four additional LRVs. There may be benefit in expanding the depot as part of
Stage 2A to cater for the fleet requirements for City to Woden Light Rail as outlined in Section 1.8 below.
1.8 Cost and Contingency
Capital costs
Estimated total Project Outturn Cost at a P75 level are shown in Table 1-2.
The Project Outturn Cost to construct Stage 2A is made up of:
• total alignment costs, of which the most significant contributors are preliminaries and signalling, rail
systems and power which represent of the total alignment cost respectively;
• escalation; and
6 Before escalation and contingency
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• contingency. This contingency figure is at a P75 level
These capital costs do not include Major Projects Canberra agency costs or Independent Certifier costs, cost
associated with delivering Stage 2B, or costs associated with progressing design, planning and early contractor
involvement for Stage 2B.
Other assumptions and key exclusions from these estimates and Project risks are described in this Business
Case.
Additional scope elements
The Project Outturn Cost outlined above excludes a number of scope items, that either are (i) not strictly
necessary for the operation of Stage 2A, (ii) attributable to the City to Gungahlin route alignment or (iii) may be
required following further Project development or consultation. An overview of these elements and relevant
considerations to potentially procuring them in conjunction with Stage 2A are outlined in the table below. Capital
costs and contingency figures are indicative and subject to further refinement.
Table 1-3: Indicative cost of additional scope or separate projects ($m, nominal, P75)
Scope element Relevant considerations to procurement in Stage 2A Estimated cost
Additional four
LRVs
• May provide opportunities for cost efficiencies and economies of scale in the
production run, leading to a lower cost per vehicle;
• Assist in minimising impacts on City to Gungahlin Light Rail should wire-free running
be required by the NCA to obtain planning approvals (see below); and
• May provide additional flexibility to ensure headways are met should Mitchell Stop
be constructed (see below), or increased headways are proposed for City to
Gungahlin Light Rail.
Depot expansion • Provide flexibility to accommodate any additional fleet purchased by the ACT
Government (see above).
Wire-free running
and urban design
finishes
• The JSC recommended, and the Commonwealth Government agreed, that any light
rail on or crossing Commonwealth Avenue, Kings Avenue, State Circle, Brisbane
Avenue, Sydney Avenue, Canberra Avenue (to Manuka Circle), Hobart Avenue,
Melbourne Avenue, Adelaide Avenue (to Kent Street) and in the Parliamentary Zone
be wire-free. This spans part of Stage 2A and 2B. As such it is likely that to obtain
approval for City to Woden Light Rail sections of wire-free running will be required;
• As was the case with City to Gungahlin Light Rail, higher standard urban design
finishes (when compared to light rail projects in other cities) are likely to be required
to meet the NCA’s standard to obtain Works Approval;
• Will support urban amenity outcomes;
• Cost includes batteries on new LRVs and retrofitting of the existing fleet; and
• The extent of any requirement for wire-free running may also increase journey times
and necessitate the procurement of up to an additional two LRVs
7 Contingency has been included on a proportional basis. A bottom up risk assessment has not been undertaken
8 Contingency has been included on a proportional basis. A bottom up risk assessment has not been undertaken
9 This is a high level estimate that refers to costs associated with the fitting of on-board energy storage systems to LRVs. It does not include the purchase of any additional LRVs that may be required should wire-free running be necessary. It is likely that wire-free running requirements would result in other additional costs (e.g. charging stations) being incurred, but may also result in costs currently in the Project scope not being required (e.g. overhead catenary). Contingency has been included on a proportional basis. A bottom up risk assessment has not been undertaken
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Scope element Relevant considerations to procurement in Stage 2A Estimated cost
Sandford Street
Stop in Mitchell
• May facilitate earlier delivery of the ACT Government commitment to construct a
light rail stop at Sandford Street in Mitchell;
• Potential to minimise procurement and agency costs by procuring these works as
part of a larger package; and
• Potential for construction and consequently cost efficiencies in delivering the works
as part of a larger package.
Environmental
offsets
• Likely to be required to meet regulatory and planning approvals.
Total additional scope cost
Operating costs
Operating expenditure (including ongoing operations, maintenance and lifecycle costs) associated with the Project
is anticipated to amount, in nominal terms, to approximately in the first full year of operations (P75). This is
shown in Table 1-4.
Table 1-4: Project Opex cost estimate – first year12 of operations ($m, nominal, P75)
Cost area Cost
Salaries and wages
Depot / Stabling Costs
Operations and General Costs
Electricity Supply
Special Events
Total Operating Costs
Vehicle maintenance costs
Infrastructure Maintenance
Total Maintenance Costs
Lifecycle Costs
Subtotal
Contingency
Total Opex
11 This is a high level indicative estimate of the potential environmental offset required and is subject to further analysis
12 This has been calculated as the first 12 months of operations (i.e. not financial year)
20
1.9 Economic Analysis
Major Projects Canberra has, independently of its economic advisor, derived a blended indicative BCR, inclusive
of wider economic benefits, between Gungahlin and Woden and Gungahlin to Commonwealth Park of 1.2 each.
This blended analysis utilises:
• Gungahlin to the City benefits as per the Light Rail Stage 1 Business Case;
• Actual Gungahlin to the City project costs as presented in the Project Delivery Report, adjusted to $2019;
and
• Stage 2A and Stage 2B analysis as set out in this Business Case.
An assessment of the economic merits of both Stage 2A (the Project) and City to Woden Light Rail (Stage 2A and
Stage 2B), has been conducted using a Cost Benefit Analysis (CBA) to produce Benefit Cost Ratios (BCRs) and
Net Present Values (NPVs) based on strategic transport modelling and expected land use changes.
The analysis includes an assessment of the impact of Stage 2A and City to Woden Light Rail (Stage 2A and 2B)
on urban development and revitalisation along the corridor. It is anticipated that construction of the light rail routes
will accelerate development at the Acton Waterfront, and the benefits of this acceleration are captured in the CBA.
Additionally, it is expected that the construction of the City to Woden Light Rail (Stage 2A and 2B) will activate the
land along the City to Woden corridor and increase population and employment growth in the area, which is
included in the City to Woden CBA.
The approach used for the economic appraisal of Stage 2A and City to Woden Light Rail is consistent with the
CBA methodology used for the City to Gungahlin Light Rail Business Case, with appropriate modifications to
reflect updated industry appraisal guidelines and parameters. The results of the analysis are summarised below.
The approach used for the blended BCR has not been created using new analysis or under the same process as
the Stage 2A or City to Woden Light Rail BCRs. Consequently, underlying assumptions from the City to Gungahlin
BCR may not be relevant and not provide the same outcome when viewed on a City to Woden basis.
The City to Gungahlin results are based on assumptions, estimates, modelling and forecasts believed to be
reasonable at the time of the 2014 Business Case. They do not reflect any changes in scope, costs or economic
reality since then, and as such do not represent the realised costs and benefits from the project.
When considered in conjunction with the BCR for the City to Gungahlin (Stage 1), the benefits of light rail across the north-south corridor between Gungahlin and Woden via the City, inclusive of wider economic benefits, exceed the costs.
Results for the City to Gungahlin Project should be interpreted in conjunction with the assumptions and limitations
set out in the Business Case for that Project.
Table 1-5: Results summary ($2019m, real, PV at 7%)
Benefit Category
Gungahlin to
Woden
(Indicative
Blended)
Gungahlin to
Commonwealth
Park
(Indicative
Blended)
City to
Commonwealth
Park
City to Woden City to
Gungahlin13
Project benefits
Transport benefits 569
City shaping benefits 534
13 Results for the City to Gungahlin Project escalated to 2019$ at 7%
21
Benefit Category
Gungahlin to
Woden
(Indicative
Blended)
Gungahlin to
Commonwealth
Park
(Indicative
Blended)
City to
Commonwealth
Park
City to Woden City to
Gungahlin13
Wider economic
benefits
278
Total Project
benefits
1,380
Project costs
Project capital costs
Operating costs
Development costs -
Total Project costs
Results
NPV (excluding
WEBs)
69
NPV (including
WEBs)
346
BCR (excluding
WEBs)
0.8 0.9 0.4 0.6 1.1
BCR (including
WEBs)
1.2 1.2 0.6 1.0 1.3
The CBA has produced BCRs for City to Woden of 1.0 and City to Commonwealth Park of 0.6 (including WEBs). A
separate CBA has not been conducted for the Commonwealth Park to Woden component of the alignment on the
basis that it will form part of a future business case for Stage 2B.
However, on the basis of the City to Woden and City to Commonwealth Park BCRs calculated above, it is likely a
BCR for this section would exceed 1.0. Indicatively, deducting the costs and benefits of the City to Commonwealth
Park economic analysis from the costs and benefits of the City to Woden BCR would result in a residual indicative
BCR of around 1.2.
While a CBA attempts to encompass all costs and benefits of a project to society, there are both elements that
cannot be quantified/monetised, as well as wider project objectives that may not be well represented within the
monetised benefits and costs. For example:
• The ACT Government has noted its plan to develop a city-wide light rail network over time. Key elements of
that light rail network cannot be delivered without developing the section of the network from the City to
Commonwealth Park;
14 Adjusted to reflect the actual cost of the City to Gungahlin Light Rail as presented in the Project Delivery Report
22
• Light rail can assist in enhancing the reputation of Canberra as a desirable city in which to live, visit and
invest;
• Relative to other forms of travel, light rail can provide a significant improvement to the mobility and access
to opportunities for disadvantaged groups, including easy access to stops and vehicles for the mobility
impaired, the elderly and for families, in a network that is easy to use and understand;
• Given appropriate stop locations, light rail can also offer better quality access to community facilities and
shopping opportunities, as well as improved personal safety relative to other forms of travel; and
• Light rail comfort is high when compared to other public transportation options.
In interpreting the results of the CBA, consideration should be paid to these potential costs and benefits that have
not been fully captured. For this reason, the CBA should not be regarded as the only tool used by government in
making an investment decision. It is appropriate for government to also have regard to a broad range of factors,
such as stakeholders’ views, long-term planning and transport objectives and the Territory’s overarching vision for
Canberra.
1.10 Key risks
The Project (Stage 2A) is a large and complex undertaking with a multitude of risks that should not be
underestimated.
A non-exhaustive list of key Project risks is outlined in Table 1-6 below.
Table 1-6: Project key risks
Risks
Procurement risks
Value for money • By undertaking a sole source procurement of the Project there is a heightened risk
that value for money through the procurement process cannot be achieved and/or
demonstrated.
Market capacity • The procurement and delivery of the Project is expected to be coincide with
significant levels of transport infrastructure construction activity on the east of coast
of Australia. Consequently, there is a significant risk that there will be market
capacity constraints impacting the budget, timing and potentially quality outcomes of
the Project.
Project risks
NCA approvals • The alignment runs through ‘Designated Areas’ and as such will require the approval
of the NCA.
• This process increases the risk of delays and additional costs if deadlines are
missed and/or additional unexpected conditions are imposed. This could include
requirements for wire-free running (see wire-free risk below).
Environmental and other approvals
• Risk that the Project does not receive all other approvals required for the Project
Market price risk • If relevant, interest rate risk – risk of higher interest rates when Project finance is
rolled over beyond first financing periods;
• Foreign Exchange risk – LRV procurement and other imported components of the
Project will be subject to changes in foreign exchange rates; and
• General labour price risk – while being a systematic risk, it should be noted that
market capacity constraints on the east coast may drive up the cost of construction
labour during the Project.
1.11 Delivery model analysis
The recommended delivery model to be pursued in the first instance for Stage 2A consists of two components:
• An ‘Early Contractor Involvement’ contract on a sole source basis with Canberra Metro in connection with
Stage 2A. This will cover the period between this Business Case and the submission of a proposal for the
main Stage 2A works by Canberra Metro. This ‘Early Contractor Involvement’ approach will enable
development of Stage 2A to continue while Canberra Metro prepares its proposal. It will also establish a
framework that will facilitate the achievement of a value for money outcome
; and
• Procurement of a contract for the Project’s main works through a sole source negotiation with Canberra
Metro. This will, at a minimum, include an integrated package consisting of the design, construction,
operations and maintenance of the Project. The entry into a contract for the Stage 2A main works will come
at the conclusion of the Stage 2A ‘Early Contractor Involvement’ process.
.
This recommended sole source approach provides the strongest basis to manage interface risks for the Design
and Construct (D&C) and Operations and Maintenance (O&M) packages and maintains continuity of service
quality and design between City to Gungahlin Light Rail and the Project under a single operator model that will
provide a single seat journey between Gungahlin and Commonwealth Park. This approach is also likely to
somewhat alleviate the risk of inadequate market participation caused by capacity constraints on the east coast of
Australia, particularly given the Project’s scale and Canberra Metro’s strong position as the incumbent operator.
A robust value for money framework will be established (as described in this Business Case) to ensure value for
money
26
1.12 Project governance
The Project will be procured and delivered by Major Projects Canberra in consultation with other relevant
stakeholders, including the Transport Canberra and City Services Directorate, the Environment, Planning and
Sustainable Development Directorate, and the City Renewal Authority. Once delivered, the management of the
operations of the Project will revert to the Transport Canberra and City Services Directorate.
The Project will operate within a governance framework which includes a Light Rail Project Board with
independent members, as well as representation from key ACT Government Directorates.
Within Major Projects Canberra, the Project team will report to the Project Director who will in turn report to the
Chief Projects Officer. Ministerial responsibility for the Project will be with the Minister for Transport and City
Services.
Figure 1-8 provides a high-level overview of the governance structure for the Project. However, these procurement
governance arrangements are indicative and are subject to change following further consideration by Cabinet.
27
Figure 1-8: Governance structure
1.13 Stakeholder management
The Project will be delivered in a collaborative and consultative way. Given the Project will be co-delivered with the
raising of London Circuit (if approved) and noting the range of other proximate projects in the city, coordination of
engagement activities will occur with the Environmental, Planning and Sustainable Development Directorate and
the City Renewal Authority.
Consultation has already occurred with the community and key stakeholders on the light rail network and the
extension of light rail south to Woden, though substantial ongoing consultation will be required through the
Project’s procurement and delivery phase. Consultation will continue to consider the full alignment from the City to
Woden (i.e. Stages 2A and 2B), but will focus on the implementation of the first component of the light rail route to
Commonwealth Park.
The communications and consultation approach outlined in this Business Case is founded on the principle that
regular engagement will deliver key Project benefits. Further, the approach supports the ACT Government’s
priorities for “enhancing liveability and social inclusion” and “suburban renewal and better transport”.
The Project has a significant number of stakeholders ranging from the Canberra community, Commonwealth
agencies and commercial organisations, through to small businesses, residents, unions and public transport
28
customers. A tailored communications and stakeholder engagement approach will be critical to the Project’s
success, adopting the right mix of engagement techniques across both the delivery and operations phases.
Given the large number of transport, land development and urban renewal projects in planning or delivery around
the route alignment, coordination, collaboration and integration of all stakeholder and community engagement
activities is critical to ensure consistent and clear messaging. It may also produce efficiencies for the ACT
Government in the delivery of communications activities.
1.14 Advisor engagement plan
Given the scale and complexity of the Project a variety of external advisors may be appointed to assist in
developing various elements of the Project. Major Projects Canberra (and before it Transport Canberra and City
Services) has worked with Shared Services Procurement (SSP) on advisor engagement matters in accordance
with relevant procurement guidelines.
Key external advisory mandates that may be required for the Project include:
• Strategic governance, project management and advisory support;
• Commercial and financial;
• Technical engineering, design and planning;
• Legal;
• Cost estimation;
• Communications, consultation and strategic relations; and
• Operations planning and management.
It is noted that this list of advisors is indicative and is likely to change as the Project progresses from the Business
Case stage, through to procurement, construction and operations. If the ACT Government proceeds with the
Project additional specialist advisory services may be required in addition to those outlined above.
1.15 Project timeline
Key indicative Project milestones (assuming London Circuit is raised) are outlined in Table 1-7. These indicative
milestones are subject to substantial change; particularly if (i) complications arise in the raising of London Circuit (if
approved), (ii) planning approvals necessitate wire-free running, or (iii) unexpected Commonwealth Government
impediments arise.
Table 1-7: Key indicative Project milestones
Milestone Anticipated Timeline
Approvals processes (Works Approval, Development
Approval and environmental)
Mid-2019 – mid-2020
Early contractor involvement process Mid-2019 – mid-2020
Main package contract award Mid-2020
Design and construction Mid-2020 – 2023 / 2024
Commissioning Late 2023 / 2024
Operations commencement 2024
Stage 2B ongoing design and planning activities 2019 – until the time of Commonwealth approval
The timeline outlined above is indicative and may be impacted by the risk factors listed in Section 1.10 above.
29
2.0 Introduction
2.1 Purpose and recommendation
The purpose of this Business Case is to (i) seek approval to enter into a procurement process and undertake associated activities for the delivery of the Project, and (ii) provide an analysis of the options, benefits, risks and procurement approach for the Project. In turn, this Business Case is designed to support Cabinet in its investment decision deliberations.
This Business Case recommends that the ACT Government:
1. Approve the Project – as depicted in Figure 2-1 – to extend light rail from the existing terminus at Alinga Street, south along Northbourne Avenue, around the western side of London Circuit to Commonwealth
Key messages
• The ACT Government has selected the City to Woden corridor as the preferred next stage of its city-shaping light rail network, creating a north-south public transport spine for Canberra, which will continue to expand over the coming years, connecting Canberra’s key employment, residential and commercial hubs, and stimulating urban renewal and economic diversification.
• The initial component of the City to Woden Light Rail corridor – Stage 2A – will involve the extension of light rail south from the current terminus at Alinga Street to Commonwealth Park. This will improve public transport connectivity between the City and those areas on the northern side of Lake Burley Griffin and will also support other revitalisation activities planned or underway in City Hill, City West and the Acton Waterfront.
• Concurrently, it is proposed that the ACT Government will continue design, planning and approval activities for Stage 2B from Commonwealth Park to Woden using the State Circle East alignment, noting the complexities that are associated with constructing light rail across the Lake at Commonwealth Avenue and through the Parliamentary Zone. This delivery approach will support the optimisation of urban renewal activities in the city precinct, providing a frequent and high quality public transport solution to Commonwealth Park, while necessary Commonwealth approvals are obtained to facilitate the delivery of the remainder of the light rail corridor to Woden.
• This Business Case has been developed in the context of existing land use and transport strategies adopted by the Territory and considers previous activities, analyses and studies undertaken to progress the development of the Canberra light rail network.
• The purpose of this Business Case is to (i) seek approval to enter into a procurement process and undertake associated activities for the delivery of the Project, and (ii) provide an analysis of the options, benefits, risks and procurement approach for the Project. This Business Case is designed to support Cabinet in its investment decision deliberations.
• This Business Case recommends that the ACT Government:
1. Approve the Project to extend light rail from the existing terminus at Alinga Street, south along Northbourne Avenue, around the western side of London Circuit to Commonwealth Avenue, terminating at Commonwealth Park, as the first component of light rail to be delivered between the City and Woden;
2. Continue with planning, design and other associated activities for the “State Circle East” alignment as the preferred route to connect light rail to Woden, with the alignment extending from the terminus at Commonwealth Park, across Lake Burley Griffin and onward to State Circle where it will travel around the eastern side of Parliament House until it reaches Adelaide Avenue, travelling south to Woden and terminating at Callam Street at a new bus/light rail interchange;
3. Proceed with procurement for the design, construction and operation of the Project on the basis of a sole source procurement with the Canberra Metro consortium.
and
4. Implement all other associated matters as outlined in this Business Case.
30
Avenue, terminating at Commonwealth Park, as the first component of light rail to be delivered between the City and Woden;
2. Continue with planning, design and other associated activities for the “State Circle East” alignment as the preferred route to connect light rail to Woden, with the alignment extending from the terminus at Commonwealth Park, across Lake Burley Griffin and onward to State Circle where it will travel around the eastern side of Parliament House until it reaches Adelaide Avenue, travelling south to Woden and terminating at Callam Street at a new bus/light rail interchange;
3. Proceed with procurement for the design, construction and operation of the Project on the basis of a sole source procurement with the Canberra Metro consortium.
and
4. Implement all other associated matters as outlined in this Business Case.
Figure 2-1: City to Commonwealth Park (Stage 2A) route alignment
2.2 Project vision and objectives
The Project aligns with the ACT Government’s ambition for Canberra as a ‘compact and connected city’.16 The
ACT Government’s vision for the Project is:
The Project will improve public transport connectivity between the City and the Lake and support other
revitalisation activities planned or underway in City Hill, City West and the Acton Waterfront.
Seven objectives (outlined in Figure 2-2) have been adopted for the Project based on guiding principles developed
by the ACT Government and an Investment Logic Mapping Workshop undertaken in April 2017 for City to Woden
Light Rail. These objectives are closely aligned with the objectives for the City to Woden corridor as illustrated in
the figure below.
16 ACT Government, ‘Canberra: A Statement of Ambition, http://www.cmd.act.gov.au/__data/assets/pdf_file/0006/865482/Canberra-A-Statement-of-Ambition.pdf, 2016
“Ensuring Canberra is one of the world’s most liveable and competitive cities connected through smart public transport.”
Across 2017 and 2018, the ACT Government undertook community consultation to solicit feedback on its
proposed changes to Canberra’s transport network, particularly in relation to the introduction of the new bus
network. This process considered the wider transport network, including light rail, to shape the design of a
transport system best suited to the needs of the community.
Consultation undertaken by Canberra Metro during construction of City to Gungahlin Light Rail included hosting
construction drop-in sessions, information pop-up sessions, construction tours and information sessions for
particular stakeholders such as retired communities.21
Community and stakeholder management activities undertaken to date, as well as the proposed future
consultation program for the Project are described in greater detail in Chapter 10.0.
2.7 Other important notes
The Capital Framework
This Business Case has been prepared with reference to The Capital Framework adopted by the ACT
Government for assessing capital works funding proposals. Adherence to The Capital Framework is designed to
enhance the rigour of the needs analysis, the identification of risks and the assessment of potential delivery
models, delivering improved value for money outcomes for the Territory.
The level of analysis undertaken for this Business Case is in accordance with the Single Assessment Framework
Business Case Tier 1 Template and associated guidance materials.
This Business Case has also considered the requirements of Infrastructure Australia to allow the Project to be
considered for potential Commonwealth Government funding in the future.
21 Canberra Metro Construction, ‘News’, https://www.canberra-metro.com.au/news, 2017 and 2018
The Capital Framework
The Capital Framework is used by Territory Directorates to assess funding proposals for medium to large infrastructure projects. The Framework helps to ensure that ACT Government investments provide maximum benefits to the Territory by addressing the right problems, choosing the best value for money investments, delivering investments as planned and realising the benefits the investment sets out to achieve.
The seven-stage Framework includes a ‘conceptualise’ stage (represented by the Investment Logic Mapping Workshop) and a ‘prove’ stage (represented by this Business Case). Other stages relate to the ‘procurement’, ‘implementation’ and ‘measurement’ phases of a Project.
As the Project is a Tier 1 Project (greater than $50 million), the level of analysis undertaken for the Business Case is in accordance with the Single Assessment Framework Business Case Tier 1 Template. In accordance with this template and The Capital Framework, this Business Case conducts a thorough and rigorous assessment of the Project to enable the Government to make an informed decision. Reviews of the needs analysis (Chapter 3), financial analysis (Chapter 7) and selection of delivery model (Chapter 8) were conducted in accordance with the Tier 1 assessment requirements.
Canberra is a vibrant, dynamic and modern city, the heart of our national government, home to places of national
and cultural significance, with world-class educational institutions and research facilities and an enviable lifestyle.
As Australia’s Capital, Canberra has an important role to play in showcasing Australia’s forward-thinking,
collaborative and inclusive nature.22
22 Transport Canberra and City Services, ‘Moving Canberra 2019-2045: Integrated Transport Strategy’, https://www.yoursay.act.gov.au/moving-canberra, 2018
Key messages
• City to Woden Light Rail is a city-shaping Project that will build on the successes of City to Gungahlin Light Rail, extending light rail south, initially to Commonwealth Park (Stage 2A) and then onward to Woden (Stage 2B). The Project will support the broader vision for Canberra outlined in Canberra: A Statement of Ambition to promote urban renewal and stimulate economic diversification in a city that is compact, competitive, welcoming and inclusive.
• The Project seeks to address four challenges to achieving this vision and the ACT Government’s broader policy objectives and aspirations for Canberra:
Challenge 1: Failure to invest in Canberra's liveability and economic connections will result in an inability to attract and retain people and businesses;
Challenge 2: Inefficient use of existing land and infrastructure will lead to an unproductive and socially dislocated city;
Challenge 3: There exists opportunity for public transport to be better utilised, to better meet customer expectations and to meet the needs of a growing population; and
Challenge 4: Population growth, combined with high car dependency, will lead to a congested road network creating negative social, economic and environmental impacts.
• Addressing these challenges will deliver significant benefits for the Territory: creating a more connected and compact city, with reduced congestion, improved access to employment and services, and increased economic growth and diversification.
• The Project will provide better connectivity between the City and those areas on the northern side of Lake Burley Griffin, activate land currently underutilised around the City Centre, maintain Canberra’s competitiveness, and lift levels of productivity with better intra-city movement of Canberrans.
The ACT Government is focused on capitalising on Canberra’s strengths to ensure that the Territory remains one
of the world’s most liveable cities – a destination of choice to
live, work, visit and invest.
The ACT Government’s Canberra: A Statement of Ambition
charts the Territory’s course for Canberra as a progressive city
that can continue to attract and retain talented people, with a
more diversified economy, high quality infrastructure and a city
that embraces the digital mindset. Realising this vision will
require a focus on ensuring Canberra is a connected, compact,
competitive and sustainable city, both now and into the future.
Canberra has high-quality (though increasingly congested)
transport infrastructure, an international airport that provides an
excellent gateway into the nation’s capital and the beginnings of
a high-quality light rail network that provides frequent, reliable
and sustainable public transport services and seamlessly
integrates with the revised bus network implemented in April
2019.
The world’s best and most liveable cities all have excellent transport networks, designed in conjunction with land
use planning to create active, people friendly communities that provide reliable and convenient transport choice.
Canberra’s light rail network will not only improve access and opportunity for all Canberrans, as truly city-shaping
infrastructure, it will help transform our suburbs, creating stable corridors for investment and stimulating urban
renewal across Canberra as the network is progressively built over the coming years.
The Light Rail Plan envisages light rail as transformative, demand-driving infrastructure that will shape Canberra’s
growth to reduce future congestion and revitalise Canberra’s satellite centres.
Challenges to achieving Canberra’s vision
While Canberra is already one of Australia’s and the world’s most liveable cities, for the city to remain competitive
into the future and continue the high-quality lifestyle Canberrans enjoy, the Territory needs to make strategic policy
decisions and investments now to address the future challenges facing Canberra.
The Territory held an Investment Logic Mapping Workshop in April 2017 for City to Woden Light Rail and identified
four challenges outlined below:
• Challenge 1: Failure to invest in Canberra's liveability and economic connections will result in an inability to
attract and retain people and businesses;
• Challenge 2: Inefficient use of existing land and infrastructure will lead to an unproductive and socially
dislocated city;
• Challenge 3: There exists opportunity for public transport to be better utilised, to better meet customer
expectations and to meet the needs of a growing population; and
Canberra: Lonely Planet’s top Australian city to visit in 2018
Canberra was named as Australia’s top ranked city in Lonely Planet’s ‘Best in Travel – Top Cities’ list for 2018.
Canberra was the only Australian city in the top 10 and placed third overall, the highest ranking an Australian city has ever received.
Highlighting Canberra’s national treasures, gastronomic experiences and the atmosphere in revitalised precincts like New Acton and Braddon, Lonely Planet notes Canberra has been “criminally overlooked… pack[ing] a big punch for such a small city.”
“The path to the Canberra of the future is marked out by transformational urban renewal and innovation, underpinned by the light rail network and the city to the lake vision, all founded on design excellence. This cannot be an exercise in the bland and boring building of ‘boxes’; it has to be about creating buildings that make statements about this city and excite interest in those living and working in them or just walking past them. They should be destinations as well as useful and modern spaces. They should be able to stand the test of time and have people still talking about them in 50 years.”
Canberra’s International Engagement Strategy, 2016
46
• Challenge 4: Population growth, combined with high car dependency, will lead to a congested road network,
creating negative social, economic and environmental impacts.
The completion of Stage 2A as the initial component of the north-south spine will help address these challenges,
which will be complemented by the construction of Stage 2B from Commonwealth Park to Woden.
Tackling these challenges by delivering the Project and ultimately the entire City to Woden Light Rail corridor will
not only fulfil the Project objectives (see Section 2.2) but will also help to achieve the ACT Government’s vision for
Canberra as a connected, compact and competitive city.
3.2 Challenge 1 – failure to invest in Canberra's liveability and economic
connections will result in an inability to attract and retain people and
businesses
High levels of accessibility and connectivity are features of liveable, successful cities across the globe. As
Canberra grows, well-connected employment hubs, service centres and suburbs will be important in attracting and
retaining new residents, businesses and investors. As part of an integrated public transport system, light rail will
improve access to jobs and services. It will also provide a stable corridor for private investment, driving greater
diversification of the Canberra economy.
Why now?
The lead times in developing and delivering major infrastructure projects mean that forward planning is essential.
To maintain the Territory as an attractive place to live, work, visit and invest, transport infrastructure needs to keep
up with and anticipate growth and changes in population and employment.
An improved public transport system will boost Canberra’s accessibility and connectivity, enhancing quality of life,
maintaining the city’s reputation for liveability and helping to attract new residents and tourists.
With Canberra Airport receiving direct international flights since September 2016, additional supporting
investments in accessibility around the city are required to provide the standard of service expected by domestic
and international tourists, visiting the nation’s capital.
Continuous improvements in infrastructure are also important to fully realise the economic and employment
potential of large cities, particularly investments that enable businesses and their workers, suppliers and
customers to interact more efficiently. A modern, efficient transport system is a critical element in sustaining strong
business growth in Canberra, stimulating diversification of the Territory’s economy and encouraging a greater
spread of employment centres.
Light rail is an integral component of Canberra’s future public transport system. By commencing the Project now,
its construction can be designed and carried out concurrently with other key proposed projects occurring in the
same corridor, supporting the optimisation of urban renewal activities in the city precinct and providing a frequent
and high quality transport solution to Commonwealth Park. As described elsewhere in this Business Case,
planning and design activities in relation to Stage 2B are proposed to continue in parallel with the Project.
Relevant separate projects are outlined in Section 2.5 and include land developments in City Hill and City West,
the raising of London Circuit to be at-grade with Commonwealth Avenue, as well as the Acton Waterfront
development which will see a vibrant waterfront precinct constructed on the shores of Lake Burley Griffin.
Furthermore, construction has recently been completed on the first stage of Canberra’s light rail network, with City
to Gungahlin Light Rail commencing operations in April 2019. That project supported the development of a range
of skills in Canberra. Data from February 2019 indicates that the City to Gungahlin Project had supported 4,753
workers and contractors, with the Project exceeding expectations in job creation and skills development.23
Continuing the construction of the light rail network, rather than delaying construction until Commonwealth
planning approvals are obtained for Stage 2B, may allow for this experience to be leveraged and skills to be
23 TCCS analysis, 2019
47
retained in the Territory, aligning with the economic diversification objectives of Canberra: A Statement of
Ambition.
Canberra’s liveability relies on connectivity to centres
Canberra generally ranks highly in the various global ratings systems and indices used to rank cities around the
world for their liveability and the wellbeing of residents.
For example, Canberra is Australia's highest scoring city according the OECD Better Life Index, which ranks cities
against eleven criteria related to regional wellbeing. As shown in Figure 3-1, Canberra’s lowest scoring categories
are education, suitability of housing and access to services.
Figure 3-1: OECD Regional Well-Being Index: ACT24
In the 2019 MERCER Liveability Ratings (used to determine recommended compensation for expatriates),
Canberra ranked thirtieth. While this is a high rating on a global scale, it is behind Sydney, Melbourne, Perth and
Adelaide (as shown in Table 3-1). This survey ranks cities against a range of criteria including political, economic,
environmental, social, safety and public service. A key gap identified for Canberra was connectivity.
24 OECD Regional Well-Being, ‘Canberra Capital Region’, https://www.oecdregionalwellbeing.org/AU8.html, 2018
Light rail as an attractive transport alternative for Canberra
A study undertaken by the International Association of Public Transport (UITP) has found that light rail services can offer a range of benefits to communities:
• Speed, reliability and regularity of services where segregated tracks and priority signaling are in place;
• Improved public transport capacity, with light rail able to carry greater loads than traditional bus networks;
• Accessibility and ease of use, offering a smoother and more comfortable ride for passengers;
• A safer means of transport as light rail has been found to be six times safer than car travel; and
• City-shaping impact supporting investment in urban renewal projects.
Canberra’s light rail network will be modern, sustainable and accessible. Wi-Fi connectivity will be available on light rail vehicles and at stops. There will be provision for bikes on board to encourage active travel and regular services will be offered in peak (at least every 6 minutes) and off peak (every 10-15 minutes), with regular services running until 1am on Friday and Saturday nights.
Source: UITP, Light Rail: A tool to serve customers and cities (2016)
28 Tourism Research Australia: ‘Australian Capital Territory Tourism Audit’, https://www.tra.gov.au/ArticleDocuments/258/ACT_DVS_Tourism_Audit_FINAL_NOV_2017.pdf.aspx?Embed=Y, 2017
Canberra is in a tourism boom
According to Tourism Research Australia data, one in seven new jobs created in the ACT is in the tourism sector. Around 17,000 people in the Territory now work in tourism industries.
Supported by unprecedented growth in visitor numbers, the sector contributed $2.3 billion to the ACT economy in 2016-17.
According to data from the Domain Group, property prices in Canberra’s Inner North and in Gungahlin have outperformed the Canberra average rate of growth since December 2015.
The introduction of a “durable transport network” is linked to urban renewal and commercial and residential development.
The image below shows a new development that has been constructed in Dickson since the announcement of City to Gungahlin Light Rail.
Source: Powell, Nicola: Short-term plan for long-term gain: Will home owners benefit from the Canberra light rail?
• Contribute to Woden’s revitalisation by enhancing amenity and safety, improving public access to the shopping
district and employment hubs and increasing property values;
• Support ongoing urban renewal in the City, Braddon and New Acton, including improved accessibility for staff
and students at the ANU, especially noting the significant investment by ANU to link its campus into City West;
• Support planned developments in the Parliamentary Triangle and improve public transport access to the area
for employees, as well as to tourist destinations;
• Encourage development along the relatively low density corridor between the City and Woden Town Centre;
• Act as a catalyst for the medium to longer term development and densification of North Curtin and Deakin; and
• Enhance the anticipated benefits from proposed City renewal opportunities by improving access between the
north and the south of Canberra.
Supporting urban renewal and development in the Acton Waterfront and City Hill
A large number of developments are in planning or under construction around the Acton Waterfront and City Hill
as outlined in Figure 3-2. Relevant land development projects proposed by the City Renewal Authority are outlined
in Table 3-3. The delivery of Stage 2A will provide reliable and convenient public transport connectivity to the
Acton Waterfront, City Hill and Commonwealth Park, optimising planned development activities and improving
place making outcomes.
Figure 3-2: Projects currently in planning or development in and around the Acton Waterfront and City Hill
Note: these projects are in various stages of planning and development and as such should be viewed as
indicative and subject to further consideration by the ACT Government.
Table 3-3: Projects in planning or development in and around the Acton Waterfront and City Hill
Project Description
South-east
cloverleaf site
The south-east cloverleaf site will unlock approximately 57,000m2 of land for development for
residential and commercial use. The proposed development will result in the closure of the
south-east cloverleaf. It will complement other developments in the City Centre area, support
improved access between the City and Lake, create more active street frontages and improve
urban amenity
52
South-west
cloverleaf site
The proposed south-west cloverleaf development will close the south-west cloverleaf to traffic
and release over 57,000m2 of land to be used for mixed-use development. The development
will complement other developments in the City Centre area, support improved access between
the City and Lake, create more active street frontages and improve urban amenity
Section 63
The City Renewal Authority is planning develop Section 63 near City Hill, which is currently
occupied by a surface carpark and the north-west cloverleaf that facilitates the movement of
traffic from Commonwealth Avenue northbound to London Circuit eastbound
Acton Waterfront
New development on the Acton Waterfront is anticipated to create homes for approximately
15,000 new residents and includes plans for open space improvements on the waterfront and
other public infrastructure. The development will also improve accessibility between the City
and the waterfront.
The feasibility and final development yield/design for the master plan in this area is under
consideration
Connecting New Acton and ANU to the City and beyond
A popular, cosmopolitan suburb with thriving new businesses that is also home to the ANU, New Acton is a
cultural precinct that has put Canberra on the map for design and originality. It has numerous offerings such as the
Nishi Gallery, Palace Electric Cinemas and popular restaurants. Keep Collective, a program of weekly creative
workshops, has also established itself in the New Acton area.33
The City West Precinct Deed signed between the ACT Government and ANU, now known as the ANU Exchange,
is designed to establish a creative convergence between the commercial centre of Canberra and the ANU
campus. It will bring the ANU campus into the City and create a vibrant zone of leading research partnerships
based around science, arts, education and on campus university living.34
Stage 2A will connect north Canberra and Commonwealth Park to the popular New Acton suburb and to
Australia’s premier research university.
Parliamentary Triangle – a growing employment and visitor hub
The Parliamentary Triangle hosts a number of nationally significant sites including Parliament House, the National
Gallery, Questacon and the Museum of Australian Democracy (Old Parliament House), attracting approximately
four million visitors each year.35 The area is home to businesses, organisations and government departments
including the Department of Prime Minister and Cabinet, the Department of Foreign Affairs and Trade, Treasury
and the Attorney-General’s Department.
The Parliamentary Triangle’s importance as an employment hub is expected to grow, with employment in the
Parliamentary Zone set to increase by 50% between 2015 and 2041.36 Residential population in the Parliamentary
Triangle is also anticipated to increase. This growth will intensify transport demand to, from and through the area.
Potential developments planned for this area include:
• ‘Place-making’ initiatives along Commonwealth Avenue, including increasing access for pedestrians and
cyclists;
33 City Renewal Authority, ‘Keep Collective’, https://www.act.gov.au/cityrenewal/whats-on/past-events/keep-collective, 2018
34 The Australian National University Exchange, ‘Master Plan and Implementation Plan’, https://www.planning.act.gov.au/__data/assets/pdf_file/0007/890611/anuex-masterplan2.pdf, 2006
35 Tourism Research Association and visitor figures obtained by ACT Government from relevant national institutions
36 Transport Canberra, ‘Light Rail Network’, https://www.tccs.act.gov.au/__data/assets/pdf_file/0011/984638/Transport-Canberra-Light-Rail-Network.PDF
• Enhancing the prominence of Kings and Commonwealth Avenues as grand boulevards with reduced travel
speeds that encourage public transport use. The Commonwealth Government has committed to investing $14
million over the next three years to help the National Capital Authority deliver upgrades to key infrastructure.
The funding provides for a business case to be prepared to consider strengthening, widening and safety barrier
replacement works on Commonwealth Avenue Bridge to ensure the continued safety of the bridge for the next
50 years. The ACT Government and the NCA are currently engaged in preliminary discussions around other
potential options for the Commonwealth Avenue bridges over Lake Burley Griffin;
• Revitalising York Park and redeveloping neighbouring surface carparks for future office accommodation.
Windsor Walk will be retained and redeveloped as a central linear park and continuous pedestrian spine
connecting car parks, offices, a proposed retail plaza and landscaped recreational areas;
• The Department of Finance plan to sell the 11,560m2 site at the corner of Sydney Avenue and National Circuit.
The land could be redeveloped to host up to 425 apartments, or a mix of housing, offices, a hotel and cafes,
according to preliminary concept plans.
These developments aim to support Canberra’s growing tourism and education sectors and capitalise on the
potential for agglomeration benefits within inner Canberra. With the delivery of Stage 2B, connecting the
Parliamentary Triangle with employment and residential hubs to its north and south, light rail will improve
accessibility, providing easy access to other key destinations and acting as a substantial public transport hub that
can support future connections to town centres to the south.
North Curtin and Deakin – underutilised and under-developed
North Curtin’s Horse Paddocks is an underutilised parcel of land close to the City, adjacent to large playing fields
in West Deakin. The area is a potential location for future urban renewal, density uplift and open space
improvement. A strategic integrated approach to transport and land use will be essential to the future development
of these spaces.
The already established health precinct in West Deakin could form the core of an expanded specialised medical
precinct in Canberra’s south, supporting additional mixed-use development. Again, improved access to this area
will provide the foundation for further expansion and residential growth.
Land use surrounding Adelaide Avenue is constrained, with the road a major arterial link, presenting a physical
barrier between the City to Woden light rail corridor and the surrounding catchment area. Improving connectivity
will unlock potential urban renewal sites and improve integration. In considering future land developments along
the corridor, such as the Horse Paddocks in North Curtin, it will be necessary to consider how future residents and
businesses will connect with light rail in the planning stages for Stage 2B.
Woden – suboptimal amenity and relatively high commercial vacancy rates
Woden is a key urban renewal site in Canberra where suboptimal urban amenity is undermining the district’s
liveability and productivity potential.
Several areas in Woden have been identified as places where women feel the least safe in the ACT, including the
bus interchange, car parks and connecting footpaths.37 In 2017, Woden had an overall commercial vacancy rate of
16.5% compared to Canberra’s overall vacancy rate of 12.6%,38 suggesting that businesses found the district a
less attractive location than other parts of the City. The Woden Town Centre Master Plan identified strong
community support for upgrades to the town square, streets, and public spaces, as well as concerns about
declining employment in Woden.39
37 Women's Centre for Health Matters presentation to Woden Valley Community Council, 2017
38 The Canberra Times, ‘Numbers reveal the story isn’t as bleak as some Woden Town Centre facades’, https://www.canberratimes.com.au/story/6036510/numbers-reveal-the-story-isnt-as-bleak-as-some-woden-town-centre-facades/, 2017
39 ACT Government, ‘Woden Town Centre: Master Plan’, https://www.planning.act.gov.au/__data/assets/pdf_file/0009/898272/Woden_Master_Plan-web.pdf, 2015
Woden Town Centre is the major retail precinct in the Woden Valley. Its landscape is currently dominated by a number of surface carparks. It has the opportunity to better improve pedestrian amenity and to better utilise land and community assets.
The Territory’s vision to deliver a high capacity transport interchange is intended to introduce generous active travel paths alongside the light rail alignment; a barrier free shared zone that ensures pedestrian and cyclist easy access across the track; and new street tree planting to reflect the nature and pedestrian scale of surrounding streets. The following two images show the Town Centre in its current form; and a visualisation of how the space could potentially look after the introduction of light rail.
Source: Gungahlin to Woden Light Rail: Submission by the ACT Government to the Joint Standing Committee on the National Capital and External Territories
56
3.4 Challenge 3 – There exists opportunity for public transport to be better
utilised, to better meet customer expectations and to meet the needs of a
growing population
Public transport is relatively underutilised in Canberra and car use is high. This is in part due to the low barriers to
car use, the historic nature of land development in Canberra, community habits and, until recently, the low-
frequency nature of Canberra’s bus network. As Canberra’s population grows, these patterns of travel will
increasingly become unsustainable. If public transport is not improved, congestion will worsen and journeys
around the city will be longer and less reliable.
Why now?
There is a significant opportunity to enhance the attractiveness of the current public transport system to encourage
new users. Australian Bureau of Statistics (ABS) data shows that 74.9% of Canberra’s working population travel
by car.41 A continued reliance on car travel in Canberra is unsustainable for a growing city in the long-term.
Investment is required now to further stimulate public transport uptake and reduce car dependency and
congestion. Experience in other cities shows that light rail is an attractive transport option that can increase public
transport usage when compared to bus transit alone. Around the world, newly built light rail lines have increased
the overall number of public transport passengers considerably. For instance, Montpellier in France experienced
an increase in public transport use of more than 50% between 1997 and 2001.42 Similar impressive gains occurred
in Strasbourg in France (over 40% between 1992 and 1999) and Freiburg in Germany.
Closer to home, the implementation of light rail networks in Sydney and Adelaide has seen increased public
transport patronage. For example, the journey to work share of total travel for light rail in Adelaide and Sydney
grew at 127% and 108% respectively between 2001 and 2011.43 In Sydney between 2015 and 2018, there has
been a 12% reduction in the number of vehicles coming into the Sydney CBD in the morning peak, and an
increase of 11% in public transport trips into the Sydney CBD in the morning peak.44 The Sydney Inner West Light
Rail extension between Lilyfield and Dulwich Hill, which opened in 2014, has led to a 30% increase in the number
of trips across the network. The Glenelg Tram Extension in Adelaide, which commenced operations in 2008, led to
a patronage rise during peak hours to and from Glenelg by 40% and an overall patronage rise of 70% within the
City.45
Significant investment in light rail is also occurring across Australia. Projects currently under construction, or
recently completed, include Sydney’s CBD and South East Light Rail, Gold Coast Light Rail Stage 3A, Paramatta
Light Rail, Adelaide’s City Tram Extension, and the Toorak Road West Tram Diversion in Melbourne.46 Other light
rail systems and extensions are in planning across Australia.
As other cities continue to improve their public transport services, Canberra needs to offer comparable travel
options to cater for its growing population and meet community expectations.
As well as investing in light rail, the ACT Government has also recently implemented significant changes to the
bus network in the Territory, as part of the delivery of an integrated transport network to get Canberrans and
visitors where they want to go (see Section 2.5.5). The network features ten Rapid routes (including light rail from
41 Australian Bureau of Statistics, ‘More than two in three drive to work, Census reveals’, https://www.abs.gov.au/AUSSTATS/[email protected]/mediareleasesbyReleaseDate/7DD5DC715B608612CA2581BF001F8404?OpenDocument, 2017
42 Crampton, G., ‘Economic Development Impacts of Urban Rail Transport’, http://www-sre.wu-wien.ac.at/ersa/ersaconfs/ersa03/cdrom/papers/295.pdf, 2003
43 Currie, G, Burke, M., ‘Light Rail in Australia – Performance and Prospects’, https://www.atrf.info/papers/2013/2013_currie_burke.pdf, 2013
44 NSW Government, ‘Sydney City Centre Access 2018’, https://access2018.mysydneycbd.nsw.gov.au/, 2018
45 Elaurant, S., Evans, G., Buchanan, P., Tisato, P., ‘Measuring Wider Economic Benefits of the Glenelg Tram Extension’, 2014
46 Bureau of Infrastructure, Transport and Regional Economics and Australasian Railway Association, ‘Trainline 5: Statistical Report’ https://www.bitre.gov.au/publications/2017/files/train_005.pdf, 2017
the City to Gungahlin) providing frequent services between town centres and other key destinations, seven days a
week. Local services have also been re-designed to better connect suburbs to their town centres, and to connect
travellers to Rapid services.47 Together, light rail and the new bus network will provide more convenient, reliable
and accessible public transport for Canberrans.
With the delivery of City to Woden Light Rail, between 2026 and 2046, the number of public transport trips is
expected to increase by over 50% to more than 141,000 trips per day.48
Light rail between Gungahlin and Woden via the City will also provide an attractive option for non-commuter
passengers, with inter peak and off-peak light rail trips expected to represent nearly 50% of all trips in 2026 and
2046 as depicted below.
Figure 3-3: Light rail network boardings (time of day, 2026 and 2046)49
Public transport accessibility for an increasing number of ANU students
A 2014 report found Canberra has the highest percentage of its population studying full time or part time,
compared to any other Australian city.50 In 2018 the ANU, one of the largest universities in Australia, had around
25,500 students. Approximately 5,000, or approximately 20%, of those lived on campus, with the remaining living
off-campus and commuting to class.51 Many students rely on, or opt for, sustainable and affordable transport
options, requiring convenient transport access in both peak and off-peak periods.52 Extending light rail south to
Commonwealth Park will provide improved connectivity for the increasing number of students at ANU, with the City
West and City South stops in close proximity to campus.
Public transport share from Woden to the City is relatively low
The Woden to City public transport connection is currently serviced by the R4 Rapid bus with other Rapid services
operating via Constitution Avenue and Barton (R5), and via Narrabundah (R6). Despite offering highly competitive
47 Transport Canberra, ‘New Network’, https://www.transport.act.gov.au/about-us/public-transport-options/bus/new-network, 2019
48 Strategic transport modelling based on a State Circle (east) route alignment between the City and Woden
49 Strategic transport modelling based on a State Circle (east) route alignment between the City and Woden
50 Study Canberra, ‘Canberra: Australia’s University Town’, https://web.aiu.ac.jp/en/wp-content/uploads/2012/12/Study-Canberra.pdf
51 Australian National University, ‘Quick Statistics’, https://www.anu.edu.au/about/quick-statistics, 2019
52 ACT Government, ‘Transport for Canberra: Transport for a sustainable city 2012-2031, https://www.transport.act.gov.au/__data/assets/pdf_file/0017/1237013/TransportForCanberra_Policy.pdf, 2012
Figure 3-6: Sum of loads on key roads, 2026 and 2046 (without the Project)
In the absence of City to Woden Light Rail (i.e. Stages 2A and 2B), the number of car trips is expected to grow by
approximately 400,000 trips per day between 2026 and 2046.61 Additionally, with light rail, car kilometres are
expected to be lower than they would otherwise be, as shown in the figure below.
61 Strategic transport modelling based on a State Circle (east) route alignment between the City and Woden
61
Figure 3-5: Car kilometres travelled with and without City to Woden Light Rail in 204662
Canberra’s per capita kilometres driven are higher than any other city in Australia
Canberra’s low population is dispersed over a large area resulting in more kilometres driven than other capital
cities in Australia. While the planning of Canberra’s satellite Town Centres envisaged a high level of self-
containment, travel and employment data indicate a greater spread of workers, with households often having
several workers employed in different locations.
Figure 3-6 shows that Canberra’s kilometres driven per capita (to 2016-17) have been consistently higher than in
other Australian capital cities since 1985. The gap in kilometres driven per capita between Canberra and the next
highest city has been growing. While Canberra’s total kilometres driven have been declining since the early 2000s,
this is not occurring at the same rate as the other capital cities.
62 Strategic transport modelling based on a State Circle (east) route alignment between the City and Woden
18,400,000
18,450,000
18,500,000
18,550,000
18,600,000
18,650,000
18,700,000
Without Light Rail With Light Rail
Tota
l car
kilo
met
res
dri
ver
per
day
in
20
46
62
Figure 3-6: Total car passenger kilometres driven per capita63
Car ownership is high compared to other cities
Generally, as the use of public transport increases, car ownership decreases. The ABS 2016 census indicated that
10.7% of households in the City of Sydney did not have access to a motor vehicle, compared to 5.6% in Canberra.
This compares to Sydney’s high rate of public transport use to get to work (20%) and Canberra’s relatively low rate
of public transport use to get to work (7%).64 Car ownership is high in Canberra, with an average of 1.8 vehicles
per household and 0.9 vehicles per person, as depicted in Figure 3-7.65 Offering greater choice in housing,
transport, access and supporting infrastructure is essential to realising the Territory’s vision of a compact and
competitive City.
63 Analysis of Bureau of Infrastructure, Transport and Regional Economics, ‘Yearbook 2018: Australian infrastructure statistics’, https://www.bitre.gov.au/publications/2018/files/infrastructure-statistics-yearbook-2018.pdf, 2018
64 Analysis of Australian Bureau of Statistics, Census of Population and Housing, 2016
65 Transport Canberra and City Services, ‘Moving Canberra 2019-2045: Integrated Transport Strategy’, https://www.yoursay.act.gov.au/moving-canberra, 2018
Figure 3-7: Household car ownership rates in Canberra overlaid with selected existing Rapid bus services (2026, without Project)
Emissions from transport are increasing
In 2015, transport emissions accounted for more than 26% of total ACT emissions (the second largest emitter of
greenhouse gases in the Territory), compared to 18% of Australian emissions. By 2020, emissions from transport
64
will represent more than 60% of ACT emissions.66 ACT transport emissions grew by 29.5% between 1990 and
201167 and the long-term trend has been one of steady growth, with a 7.4% increase recorded between 2013-2014
and 2014-2015 – higher than the Territory’s population growth over that period. Between 2012 and 2017,
emissions from transport increased by 11% across the Territory.68 Passenger vehicles comprise approximately
73.5% of the direct emissions produced in the ACT.69
Figure 3-8: Transport emissions in the ACT, 2007-08 to 2014-1570
The ACT Government’s emissions reduction targets are established through the Climate Change and Greenhouse
Gas Reduction Act 2010. The Act seeks to achieve a 40% reduction in greenhouse gas emissions on 1990 levels
by 2020 and zero net emissions by 2050.
A more ambitious target of zero net carbon emissions in the ACT by 2045 is outlined in the Government’s Moving
Canberra 2019-2045 Integrated Transport Strategy. The Strategy also sets a goal of a reduction in emissions from
transport by 25% from 2020 to 2025.71 AP2 – the climate change strategy and action plan for the ACT released in
2012 – outlines a core focus for Transport Canberra and City Services in reducing transport emissions and
encouraging more people to shift to more sustainable modes of transport: public transport, cycling and walking.
In the ACT, a reduction of emissions from car transport by a minimum of 30% would be necessary, to achieve the
Government’s transport sector goals.72
3.6 Key benefits to be realised from this Project
The Investment Logic Map identified four main benefits that are expected to be realised by City to Woden Light
Rail. These benefits are equally applicable to the Project, as the initial stage in extending light rail south to Woden.
The benefits are as listed below:
66 Transport Canberra and City Services, ‘Moving Canberra 2019-2045: Integrated Transport Strategy’, https://www.yoursay.act.gov.au/moving-canberra, 2018
67 ACT Government, ‘Transport for Canberra Report Card’, https://www.transport.act.gov.au/__data/assets/pdf_file/0007/887362/Transport-for-Canberra-Report-Card.pdf, 2014
68 Transport Canberra and City Services, ‘Moving Canberra 2019-2045: Integrated Transport Strategy’, https://www.yoursay.act.gov.au/moving-canberra, 2018
70 AECOM, ‘Strategic Options for Reducing Emissions in 2030, 2040 and 2050’, https://s3.ap-southeast-2.amazonaws.com/hdp.au.prod.app.act-yoursay.files/2115/1252/3391/60507826_Reducing_ACT_Transport_Emissions_Final_Report_Rev_5.pdf, 2017
71 Transport Canberra and City Services, ‘Moving Canberra 2019-2045: Integrated Transport Strategy’, https://www.yoursay.act.gov.au/moving-canberra, 2018
72 Transport Canberra and City Services, ‘Moving Canberra 2019-2045: Integrated Transport Strategy’, https://www.yoursay.act.gov.au/moving-canberra, 2018
3. Improved access to employment and services; and
4. Increased economic growth and diversification.
These benefits and their values are summarised below. As with the City to Gungahlin Light Rail project, it is
expected that a Benefits Realisation Plan will subsequently be developed by the ACT Government in consultation
with relevant directorates. That Benefits Realisation Plan will measure Project outcomes against a series of Key
Performance Indicators which are to be agreed.
Figure 3-9: Key Project benefits
Expected benefit Value of benefit
Increased economic growth and diversification of employment
• Job creation along the light rail corridor
• Agglomeration benefits (as discussed in the economic appraisal – see Chapter 7.0)
• Diversification of jobs in Canberra, reducing reliance on Commonwealth Government
employment and expenditure (which will also have positive implications for ACT tax
revenues)
• As light rail generates revenue and unlocks value along the corridor, this benefit can be
realised in the form of increased tax revenue on land (including both higher value land and
better utilised land)
A connected and compact city
• Infrastructure cost savings associated with infill development (relative to development
along the urban fringe)
• Wider economic benefits achieved due to land use change (see Chapter 7.0)
• Higher levels of productivity due to an increase in density and agglomeration
• Reduced urban sprawl
• In addition to planned urban renewal, light rail will be a catalyst for further private
development in the area – providing ongoing revenues to the ACT Government
Improved access to employment and services
• Supporting the unlocking of commercial and retail space will increase the number of
accessible jobs in Canberra
• Better access to employment will increase productivity and ultimately the economic output
of the City
Reduced congestion
• Increased public transport use, leading to a reduction in car use and associated congestion
and pollution
• Travel time savings equivalent to over the first 30 years of operations (see
Chapter 7.0)
• Estimated net externality benefits at over a 30-year appraisal period (see
Chapter 7.0). This estimate includes reductions in emissions, noise, water pollution and
impacts on nature and landscape
66
The relationship between the challenges and benefits outlined in this Section and the economic benefits quantified
in the cost benefit analysis (CBA) are outlined in Table 3-4 below.
Further detail on the CBA is outlined in Chapter 7.0.
Table 3-4: Relationship between needs analysis and economic appraisal
Economic Benefits
Need for Investment
Economic
diversification
Competitive and
compact city Accessibility
Reduced
congestion
Tra
ns
po
rt B
en
efi
ts
Travel time savings ✓ ✓ ✓
Reliability benefits ✓ ✓ ✓
Vehicle operating
costs ✓ ✓ ✓
Net externalities ✓ ✓ ✓
Accident costs ✓ ✓ ✓
PT Revenue ✓ ✓
Bus operation cost
savings ✓
Health benefits ✓ ✓
Light rail amenity
benefits ✓
Residual Value ✓
Second round
transport benefits73 ✓ ✓ ✓
Cit
y-S
ha
pin
g
Be
ne
fits
Land value uplift ✓
Infrastructure cost
savings ✓
Wid
er
Ec
on
om
ic
Be
ne
fits
Transport
agglomeration ✓
Land use
agglomeration ✓
The benefits identified in this Business Case are of high importance to the ACT Government. They will keep
Canberra competitive and contribute to making the city more productive, liveable and sustainable.
73 Transport benefits that accrue as a result of changes in land use
67
Treasury directorate to sign off that a case for the Project is present in the Business Case. Review 2 (Treasury) Officer Name: ____________________________________ Signature: ____________________________________ Date: ____________________________________
68
4.0 Options analysis
4.1 Overview
This Chapter outlines the strategic, project and delivery options analysis that has been undertaken for the Project.
It is divided into:
• Strategic options analysis: outlining the potential light rail options identified in the Light Rail Plan and the process undertaken to select the City to Woden corridor;
• Project options analysis: outlining the process used to shortlist route alignments to Woden and the analysis undertaken to support the preferred route alignment; and
• Delivery options analysis: outlining the process used to determine the preferred delivery approach for the Project.
The strategic options analysis concludes that the City to Woden corridor is a high priority due to its capacity to connect key residential, cultural, commercial and employment centres across the City using an integrated public transport network. While the City to Woden route alignment has technical and planning challenges, it is a crucial part of the integrated transport network, connecting north and south Canberra and forming the backbone of an integrated and accessible public transport network.
The Project options analysis shortlists three route alignment options:
• Option 1: City to Woden via State Circle (East)
• Option 2: City to Woden via Capital Circle
• Option 3: City to Woden via Parkes/Barton
Key messages
• The ACT Government has determined to proceed with City to Woden Light Rail as the next stage of Canberra’s light rail network. It is proposed to be delivered in accordance with the priorities identified in the Light Rail Network Plan to:
o Ensure the light rail network connects to other modes of transport and employment hubs;
o Invest in corridors where there is a future need; and
o Shape the growth of the city.
• The City to Woden corridor was identified as a high priority due to its capacity to connect key residential, cultural, commercial and employment centres across the city using an integrated public transport network.
• In 2017, the ACT Government undertook a range of scoping activities to understand the key considerations, risks, opportunities and objectives for City to Woden Light Rail. These activities led to the selection of several options for further analysis and community and stakeholder consultation. In 2018 options were presented to the JSC inquiry in order to gain certainty around the approval process for traversing the Parliamentary Zone.
• Following the JSC inquiry, additional guidance provided by the NCA, further technical analysis and deliberations by the ACT Government, three final route alignment options to Woden have been considered. Following a comparative analysis of each route alignment’s benefits and costs, technical feasibility, ability to obtain approvals and performance against the Project’s objectives, it is recommended that the ACT Government continue with planning, design and other associated activities on the basis of a “State Circle East” alignment as the preferred route to connect light rail to Woden.
• Delivery options were also considered to determine the preferred delivery approach for light rail in the City to Woden corridor. A staged delivery approach is recommended, with the first component of the City to Woden corridor, Stage 2A, to be delivered being from the existing light rail terminus at Alinga Street to Commonwealth Park (on Commonwealth Avenue, on the northern side of Lake Burley Griffin).
• Delivery of Stage 2B will be the subject of a separate, future recommendation to Cabinet once
Commonwealth planning approval processes are further resolved.
69
A comparative assessment of the merits of these route alignments when evaluated against a series of criteria
(connectivity and urban renewal, planning and technical, cost and risk contingency, and community and
governmental consultation) has resulted in this Business Case’s recommendation that the Project be constructed
between the City and Woden via State Circle East (Option 1). This alignment is preferred as it provides a balanced
option that supports the achievement of the Project objectives and is likely to have the best chance of obtaining
necessary planning and approvals.
The delivery options analysis considers two options:
• Option 1: staged delivery approach
• Option 2: non-staged delivery approach
A staged delivery approach (Option 1) is preferred for reasons described below.
4.2 Strategic options analysis
The ACT Government has made a clear commitment to construct the
light rail network over the coming years to help achieve its vision for
Canberra and to:
• Deliver an attractive public transport choice for the City;
• Support and generate urban renewal; and
• Diversify the Canberra economy.
The Light Rail Network Plan identified seven different potential light rail
corridors. These corridors are depicted in Figure 4-1.74 Light rail plans
and further analysis have set out the priorities for the development and
delivery of a light rail network that facilitates easy access between
communities, major educational institutions, retail and entertainment
precincts, major events and employment hubs through an integrated
public transport network.
Light rail will be demand driving infrastructure that will help shape the
way the City grows with higher density and more compact urban form
along light rail corridors.
In light of these considerations and following consultation with the
community, the ACT Government announced in September 2016 that
City to Woden via the Parliamentary Triangle would be the next stage of the light rail network to be developed.
Recommended strategic option
The strategic options analysis conducted in the lead up to ACT Government’s decision to proceed with City to
Woden Light Rail as the next stage of the network concluded that it aligned with the priorities identified in the Light
Rail Network Plan to:
• Ensure the light rail network that connects to other modes of transport and employment hubs;
• Invest in corridors where there is a future need; and
• Shape the growth of the City.
While the City to Woden route alignment has technical and planning challenges, it has strategic significance and is
a high priority due to its:
74 This map has been updated since the ACT Government released the Light Rail Network Plan document
Figure 4-1: Canberra's future light rail network
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• Capacity to connect key residential, cultural, commercial and employment centres across the City using
an integrated public transport network;
• Ability to connect north and south Canberra, creating a north-south public transport spine; and
• Potential to stimulate urban renewal along the route alignment but particularly in Woden.
The City to Woden corridor also gives the ACT Government an opportunity to consider supporting infrastructure
and other policy approaches to enhance Project outcomes and achieve broader Territory objectives with respect to
inclusivity, employment, accessibility and land utilisation.
4.3 Project options analysis
Based on the recommended strategic option outlined above
which identified the City to Woden corridor a high priority, Major
Projects Canberra, and before it Transport Canberra and
City Services, has undertaken project options analysis to
shortlist the most appropriate route alignment options from
the City to Woden. Options were subject to community
consultation and further technical analysis.
Although the route alignment options discussed in this
section relate to Stage 2B, it is necessary to determine the
Stage 2B alignment now so that continued planning and
design works for Stage 2B can take place in relation to the
ultimate alignment to Woden.
The Project options analysis initially sought to define the
need and objectives of the route alignment shortlisting
Options 1 (State Circle) and Option 3 (Parkes Barton) are anticipated to have very similar patronage numbers,
while Option 2 (Capital Circle) is anticipated to be slightly lower.
Table 4-3 provides a more detailed qualitative assessment of the route alignments, depicting the comparative
merits of each when evaluated against a series of criteria. The three key criteria are set out below and were
developed to align closely with the seven Project objectives that have guided the development of the Project,
which are set out in Section 2.2.
When reflecting on Table 4-3 it should be noted that the analysis was completed under current expectations and
assumptions. As the Project progresses to detailed design, some of these expectations may change, such as
estimated travel times and light rail stops.
Table 4-2: Qualitative criteria
Criteria Alignment with Project Objective
1.
Connectivity
and urban
renewal
CONNECTIVITY Provide a north-south public transport spine that represents the next stage of a future city-
wide light rail network that connects communities across Canberra
TRANSPORT CHOICE Provide Canberrans with an attractive, convenient, efficient and reliable integrated
public transport system that facilitates choice, increases public transport patronage and reduces car
dependency
LIVEABLE AND PRODUCTIVE Build a productive, diversified and smart economy by making Canberra a
more attractive place to live work and invest
ENVIRONMENT Reduce emissions and promote sustainable urban form for the benefit of current and future
generations
2. Planning
and
technical79
SHAPE AND PLACE Frame the future shape of development along the corridor while reinforcing the identity
of existing communities and provide early delivery of city-wide initiatives for urban renewal and diversity of
place
3. Cost and
risk
contingency
VALUE AND INNOVATION Deliver the Territory an affordable Project solution that drives innovation and
provides a value for money outcome
75 It should be noted that these patronage figures were generated for the purposes of the economic analysis and initial technical design and are only a forecast. Actual patronage figures may differ substantially from these estimates. There have been instances where transport modelling patronage estimates have been understated compared to actual usage.
76 The patronage figure refers to the increase in light rail boardings that occur following the Project’s commencement of operations. Figures are rounded to the nearest hundred boardings
77 The patronage figure refers to the increase in light rail boardings that occur following the Project’s commencement of operations. Figures are rounded to the nearest hundred boardings
78 The patronage figure refers to the increase in light rail boardings that occur following the Project’s commencement of operations. Figures are rounded to the nearest hundred boardings
79 The Parliamentary Zone is an area of national significance subject to special planning rules requirements. A clear path to identify and navigate the requisite approvals and restrictions in this area is necessary to provide certainty in determining the optimal project solution
76
Table 4-3: Detailed assessment of route alignment options
• The later commencement may result in skills being
lost to interstate, particularly given the demand for
skilled labour and the constrained east coast
construction market
• Connectivity between the City and Commonwealth
Park is provided later and is potentially misaligned
with urban renewal and development activities in
the area
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Recommended delivery option
Balancing the advantages and disadvantages listed above, the benefits of a staged delivery approach (Option 1)
are assessed to outweigh potential disadvantages. This Business Case ultimately recommends that City to Woden
Light Rail proceed under a staged delivery approach, with this Business Case assessing the benefits, risks, costs
and delivery model options for City to Commonwealth Park Light Rail (Stage 2A) as the initial component of a light
rail line to Woden. Concurrently, it is proposed that the ACT Government continue design, planning and approval
activities for Stage 2B to Woden using the State Circle East alignment, noting the complexities that are associated
with constructing light rail through Parliamentary Zone.
Base Case for the Project’s Business Case
The ‘base case’ scenario represents the likely situation if the Project does not proceed under any option. This is effectively a ‘business as usual’ scenario under which the problems identified in the Investment Logic Map will worsen and become further entrenched and more difficult to resolve. In particular:
• Canberra’s population and car dependency will continue to grow, leading to an increasingly congested road network and growing pressures on key roads;
• Land and infrastructure will continue to be inefficiently utilised;
• The opportunity to further enhance the attractiveness of the current public transport system will go unrealised;
• Existing public transport which relies on road capacity will suffer increased travel times; and
• Canberra’s liveability and economic connections will be impacted adversely, making it more difficult to attract and retain residents, businesses, visitors and investors.
Ultimately, the ‘business as usual’ scenario will delay and potentially threaten the achievement of the ACT Government’s vision for Canberra and its objectives of encouraging urban renewal and stimulating economic diversification. Further detail on the base case assumptions used for the purposes of the economic analysis are outlined in Chapter 7.0.
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5.0 Project Scope
5.1 Overview
City to Woden Light Rail will provide improved public transport choice for Canberrans, while supporting the
revitalisation of suburbs along the corridor to create a more compact and connected City that promotes inclusivity,
high quality spaces and more community-focused neighbourhoods.
As outlined in Chapter 4.0, City to Woden Light Rail will be delivered in two stages: Stage 2A to Commonwealth
Park and Stage 2B to Woden as depicted in Figure 5-1.
Key features of City to Woden Light Rail are outlined in Figure 5-2. These are subject to further technical and
operational analysis and design.
Stage 2A will extend light rail from the current terminus at Alinga Street to Commonwealth Park, improving public
transport connectivity between those areas on the northern side of Lake Burley Griffin and the City (and onward to
other destinations), with Stage 2B extending light rail further south to Woden through the Parliamentary Zone.
While the ACT Government is committed to completing the full City to Woden light rail alignment, this Chapter
largely focuses on Stage 2A. A high level overview of the scope of Stage 2B is outlined in Section 5.11.
Key messages
• The Project (Stage 2A) will extend light rail from the current terminus at Alinga Street to Commonwealth Park, improving public transport connectivity between the Lake and the City and onward to other destinations as the initial stage in constructing light rail to Woden.
• The Project will also support other revitalisation activities planned or underway in City Hill, City West and the Acton Waterfront, with light rail carefully designed to improve urban amenity outcomes along the alignment.
• The Project includes the construction of structures, stops, track, road, signalling and other works, and the procurement of additional light rail vehicles (LRVs).
• Where relevant, the design of the Project will be consistent with existing City to Gungahlin Light Rail designs to ensure a high quality, consistent, customer-focused network. Stops will be highly accessible and integrated into their surroundings.
• The Project’s operations and maintenance activities will include the operation of light rail services, power supply, communications and control systems, LRV maintenance and infrastructure maintenance.
• LRVs will be consistent with, but not necessarily identical to, the LRVs procured for City to Gungahlin Light Rail and will have Wi-Fi, priority seats for mobility impaired passengers and internal space for four bicycles.
• The precise scope of the Project will continue to be developed during the Project’s procurement phase and future planning and approvals processes.
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Figure 5-1: City to Woden Light Rail corridor (Stage 2A and 2B)
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Figure 5-2: Anticipated City to Woden Light Rail key features
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Place making and customer experience
The Project will support revitalisation activities planned or underway in City Hill, City West and the Acton
Waterfront, with light rail carefully designed to improve urban amenity outcomes along the alignment. Investment
in light rail has demonstrated its potential to contribute to the creation of vibrant activity centres, supporting urban
renewal and creating attractive, people friendly places. It is anticipated that the Project will be no exception,
complementing planned mixed use developments and supporting the achievement of the ACT Government’s
vision for Canberra as a connected and compact City.80 These benefits will grow as the ACT Government
completes Stage 2B to Woden, supporting the revitalisation of the Woden Town Centre and connecting key
employment, residential and commercial hubs with a high quality light rail network.
Figure 5-3 depicts the stops on the proposed alignment, extending south from the existing Alinga Street terminus.
It should be noted that stop locations may change through the Project’s procurement phase as additional planning
and engineering works are undertaken.
Figure 5-3: Potential Project stops
Capital works and services
A high-level overview of the capital works and services to be undertaken for the Project are outlined in Figure 5-4
and Figure 5-5.
80 ACT Government, ‘Canberra: A Statement of Ambition’, http://www.cmd.act.gov.au/__data/assets/pdf_file/0006/865482/Canberra-A-Statement-of-Ambition.pdf, 2016
The final scope of the Project’s capital works and services will be further developed and refined during more
detailed design and procurement processes.
All works will be compliant with relevant legislative and regulatory requirements, standards and statutory approvals
processes.
Overview of physical features
Table 5-1 summarises the main physical features of the Project. These features are described in further detail in
subsequent sections.
While these features provide the basis for the cost estimates in this Business Case (see Chapter 6.0), their scope
may change during the more detailed design and procurement processes. The Project scope is also subject to
Cabinet and other required planning approvals, such as NCA requirements.
While the ACT Government proposes to seek private sector innovation and guidance in respect of the Project’s
physical features, a consistent design approach with City to Gungahlin Light Rail will be adopted to deliver an
easily navigable network and a quality, consistent customer experience across the length of the route alignment
from Gungahlin to Commonwealth Park and onward to Woden when constructed. While it is anticipated that
infrastructure and systems will be similar to those adopted for City to Gungahlin Light Rail, improvements will be
implemented where possible.
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Table 5-1: Summary of the Project’s physical features
5.2 Place making
The Project will extend light rail from the current terminus at Alinga Street to Commonwealth Park, improving
public transport connectivity between those areas on the northern side of Lake Burley Griffin and the City. It will
represent the first component of light rail in the City to Woden corridor and provide a single seat journey from the
growing population centre of Gungahlin via key hubs in Dickson, along Northbourne Avenue and the City to
existing and planned commercial, residential, cultural and entertainment precincts in and around City West and the
Acton Waterfront.
Physical feature Description
Route
The proposed light rail route commences in the City’s central business district from the existing Alinga Street terminus and travels south along Northbourne Avenue, around the west side of London Circuit and onto Commonwealth Avenue. The Commonwealth Park terminus stop is located on Commonwealth Avenue, north of the intersection between Commonwealth Avenue and Albert Street.
Approximately 150m of track may be constructed south of the Commonwealth Avenue stop, including a double-scissor turn back to facilitate LRVs changing direction at the terminus.
The approximate length of the route is 1.7 kilometres.
Stops Light rail stops will predominately have the same design as stops on City to Gungahlin Light Rail. The route extension has two intermediate stops at City West and City South, as well as the initial terminus at Commonwealth Park (noting that it will be a regular stop once Stage 2B is delivered).
Track
Track appearance: In general, the Project will have the same track appearance as City to Gungahlin Light Rail: a standard gauge, double track light rail route that is largely at grade. Track finishing will be determined during the procurement and more detailed design processes.
Track location: While the City to Gungahlin Light Rail track primarily occupies road medians and verges, some of the Project’s track will occupy road traffic lanes currently used by general traffic.
Power transmission and supply
A wired power delivery to LRVs will provide the most operationally flexible solution.
LRVs are anticipated to be of a similar design to the existing fleet that operates between the City and Gungahlin.
It should be noted that while this Business Case is based on an assumption of an overhead wired system, NCA planning conditions may necessitate wire-free running for sections of the Stage 2A route alignment, requiring the LRVs to have an on-board energy storage system.
This would also necessitate the 14 LRVs procured as part of the City to Gungahlin Light Rail project (which were specified to enable wire-free running) to be modified to allow the whole LRV fleet to be capable of end-to-end running from Gungahlin to Commonwealth Park.
Signalling
As a line-of-sight system, the light rail network does not require a signalling system to maintain separation between LRVs proceeding in the same direction. However, traffic signalling will be required to manage potential conflicts between LRVs and road vehicles at intersections, give pedestrians safe access to stops, and achieve travel time targets. Light rail will be given signal priority at intersections.
Bus/light rail interchanges
The current bus interchange in the City will serve as a major multi-modal transport interchange hub. As a high-quality bus/light rail interchange, the City Interchange will improve the efficiency and ease of journeys around Canberra.
LRVs
LRVs will be similar, but not necessarily identical, to those used in City to Gungahlin Light Rail to ensure a consistent customer experience and to reduce integration risks. For the purposes of this Business Case, it is expected that four LRVs will be required for the Project and on-board energy storage systems are not required. Chapter 6.0 provides an indication of the additional cost that could be expected should wire-free running be stipulated by the NCA. LRVs will be approximately 33 metres in length with a maximum speed of 70 km/h.
Depot
The existing City to Gungahlin Light Rail depot in Mitchell will continue as the base for operations and maintenance of the light rail network and is of sufficient size to accommodate the additional four LRVs to operate a north-south light rail route from Gungahlin to Commonwealth Park. Minor works will be
undertaken to provide appropriate stabling facilities for the additional LRVs purchased for Stage 2A.
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The Project will improve connectivity between employment hubs and residential areas, promoting greater
diversification of the Canberra economy and supporting revitalisation activities planned or underway in City Hill,
City West and the Acton Waterfront.
While decisions on development will be subject to separate government decision making processes, urban
development plans and strategies could promote concentrations of activity aligned with public transport services,
with the aim of creating communities that are more environmentally, socially and economically sustainable. The
construction of the Project will assist with achieving these outcomes between the Lake and the City. It will also lay
the foundation for the realisation of benefits along the City to Woden Light Rail corridor when Stage 2B from
Commonwealth Park to Woden is constructed.
The landscape along the corridor is designed to respond to the unique characteristics of the surrounding
environment, while recognising and supporting the broader vision for the city outlined in Griffin’s Legacy and the
NCA’s design strategy for Kings and Commonwealth Avenues. Canberra is made up of many world class avenues
and boulevards, and the Project’s urban design seeks to support and enhance the quality of these spaces.
Key attractors and activity centres
The Project will be designed to ensure close integration between transport modes, connecting key attractors with
light rail stops using feeder bus services, pedestrian walkways and cycle paths. The stops have been chosen to
optimise the connectivity between precincts, employment hubs and residential areas. Each stop has a number of
key attractors nearby – existing activity hubs in the community, as well as tourist, education or shopping and retail
centres. Key attractors fall broadly into the following categories:
• Employment and residential hubs: with a mix of residential and commercial development planned for City
Hill and the Acton Waterfront, the Project will provide a high-quality transport link to supplement the growth in
employment and residency in these areas;
• Education facilities: ANU in Acton has over 25,500 student enrolments,81 and is approximately 900m from
the City West stop on London Circuit;
• Tourism and visitor attractors: the Project will connect the City with key visitor sites at Lake Burley Griffin –
such as Commonwealth Park, Canberra Theatre and other nearby entertainment venues, the National
Museum of Australia, and lakeside walking and cycling paths – supporting future development in the Acton
Waterfront area; and
• Shopping and retail: as well as servicing existing shopping precincts in the City, the Project will enable the
growth of retail development in the City Hill and Acton Waterfront.
Realising precinct opportunities
The key urban renewal zones for the Project are City Hill, City West and the Acton Waterfront. The Project will
support the realisation of the Territory’s vision for the city centre outlined in The City Plan. Stops have been
located to integrate with existing and future activity centres, taking into account developments around the Acton
Waterfront, City Hill and City West.
By 2046, it is anticipated that mixed use development in the Acton Waterfront precinct could total 195,305 m2 of
gross floor area, consisting primarily of residential uses (178,261 m2), as well as commercial space (17,044 m2).
As outlined in Section 2.5, other development opportunities include Section 63 and surrounding development sites
in City Hill.
81 Australian National University, ‘Quick Stats’, https://services.anu.edu.au/planning-governance/performance-measurement/quick-stats, 2018
The seamless integration of light rail and its stops into surrounding precincts is a priority outcome for Canberra’s
light rail network, but is particularly relevant for the sections of the Project that traverse nationally significant areas,
such as Commonwealth Avenue. The location of light rail stops has been carefully identified, accounting for the
characteristics of the corridor, the potential for place making opportunities, the location of key attractors and the
need to ensure that connectivity is maximised along the corridor.
The landscape surrounding each stop has been considered to allow for tailored design solutions that respect the
local environment. These areas will be designed to be urban spaces that are liveable, safe, active and attractive.
The figure below depicts an artist impression of the proposed stop at City West.
Figure 5-6: Artist impression of proposed stop at City West
Note: This representation is indicative only. The final appearance of stops is subject to future design development
and the Project’s procurement process.
Stop features
Core stop and platform elements developed for City to Gungahlin Light Rail will be used for the Project to create a
comfortable, consistent network-wide customer experience between Gungahlin and Commonwealth Park. This
includes the canopy design that provides a signature and recognisable element for the stops.
Stops will be accessible for passengers with restricted movement (that is, compliant with the requirements of the
Disability Discrimination Act (1992)), with features including:
• Parking at designated locations that meet the needs of people with impaired mobility;
• Safe and convenient access to entrances and public spaces;
• Accessible supporting infrastructure, including passenger ramps, handrails and grab rails; and
• Facilities, such as street furniture (seating, drinking fountains and litter bins) and ticket machines, designed and
provided in accordance with appropriate Australian Standards.
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Proposed stops and walking catchments
The location of proposed stops along the Project route alignment is listed north to south in Table 5-2, together with
the type and access arrangements. The route alignment will extend south from the existing terminus at Alinga
Street, which has been excluded from the table as it has been constructed as part of the City to Gungahlin Light
Rail Project. Figure 5-7 provides an overview of areas within the walking catchment of proposed stop locations.
The precise location and design of stops may continue to evolve through the Project’s procurement and planning
processes.
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Table 5-2: Proposed stop locations, type and access arrangements
Stop Location Type Access
City West
This stop is located at London Circuit, south of Gordon Street.
Side platform
Patronage modelling identified this area as the third busiest stop in the network after Alinga Street and Gungahlin Place, and therefore accessibility will be critical. The platforms will be accessed by signalised crossings with modifications to existing footpaths to achieve integration and access.
Currently, possible designs involve the pedestrianisation of this section of London Circuit to further enhance access around the area.
Figure 5-7 depicts the key sites within a 5 and 10 minute walk of the stop, including the National Film and Sound Archive, Llewellyn Hall and ANU buildings such as the School of Music.
City South
This stop will be located at Commonwealth Avenue, north of Parkes Way, as the light rail route turns from London Circuit (southbound).
Island platform
The platforms will be accessed from a signalised road crossing on Commonwealth Avenue.
Figure 5-7 depicts the key sites within a 5 and 10 minute walk of the stop, including future development sites in City Hill and the Acton Waterfront.
Commonwealth Park
The stop will be located at Commonwealth Avenue, near Albert Street, Commonwealth Park (500m to the east) and the planned Acton Waterfront precinct to the west.
Island platform
The stop will be accessed from the existing signalised road crossing on Commonwealth Avenue, the primary crossing for Floriade and will act as the terminus the stop for Stage 2A.
Figure 5-7 depicts the key sites within a 5 and 10 minute walk of the stop, including future development sites in the Acton Waterfront and Stage 88 in Commonwealth Park.
The stop is a short walk (250m) from the existing Lake Burley Griffin recreational pathways.
Light rail offers an attractive alternative to cars as it provides a convenient, reliable and regular service that
connects customers to where they want to go, when they need to travel. The Project aims to deliver the
following service outcomes:
• Travel time82 – The journey time between the Commonwealth Park and Alinga Street Termini is
approximately 6 minutes.
• Periods of service – A combined Gungahlin to Commonwealth Park service will have the operating
hours outlined in Table 5-3. The existing hours of operation have been extended to provide the same
level of service for existing City to Gungahlin Light Rail customers.
Table 5-3: Gungahlin to Commonwealth Park proposed hours of operation
Service Hours of Operation
First Services
The first service southbound from
Gungahlin to Commonwealth Park
Leave Gungahlin at or before 0600 on weekdays and Saturdays, and
at or before 0800 on Sundays
The first service southbound from
Alinga Street to Commonwealth Park
Leave Alinga Street at or before 0600 on weekdays and Saturdays,
and at or before 0800 on Sundays
The first service northbound from
Commonwealth Park to Gungahlin
Leave Commonwealth Park at or before 0600 on weekdays and
Saturdays, and at or before 0830 on Sundays
The first service northbound from
Alinga Street to Gungahlin
Leave Alinga Street at or before 0600 on weekdays and Saturdays,
and at or before 0830 on Sundays
Last Services
82 Wire-free operations (if required) and the raising of London Circuit may impact on the travel times outlined in this Business Case. Wire-free operations from Commonwealth Avenue to Kent Street would add in the order of 2 to 2.5 minutes to the journey time from the City to Woden.
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Service Hours of Operation
The last service southbound from
Gungahlin to Commonwealth Park
Leave Gungahlin at or after 2300 on Sundays through to Thursdays,
and at or after 0030 on Friday and Saturday nights (i.e. 0030 Saturday
and Sunday)
The last service northbound from
Commonwealth Park to Gungahlin
Leave Commonwealth Park at or after 2330 on Sundays through to
Thursdays, and at or after 0100 on Friday and Saturday nights (i.e.
0100 Saturday and Sunday)
• Frequency – the Project will be an extension of the City to Gungahlin Light Rail service and will
therefore have the same frequency. Light rail operations are expected to achieve a frequency of at least
10 minutes on weekdays between the core hours of 7am and 6pm with 6 minute frequencies in peak
periods. Outside these hours on weekdays and all day on Saturdays, Sundays and public holidays, the
frequency is anticipated to be at least every 15 minutes.
These service targets may be subject to further development during the Project’s procurement phase. For
example, proposed service frequencies may be improved over the course of the concession term for light
rail operations by agreement between the ACT Government and the operator.
5.5 Light rail vehicles
The minimum LRV fleet size for both the City to Gungahlin and City to Commonwealth Park light rail
network in total is estimated to be 18, though this is subject to ongoing design development. For the
purposes of this Business Case, it is expected that a minimum of four LRVs will be required for the Project.
The preferred traction power system for the project is an overhead wire (OHW) system. LRVs will be
procured on that basis, which will provide the following advantages:
• A reduced travel time between the City and Woden in the order of 2 to 2.5 minutes;
• Reduced cost;
• Maintenance simplicity;
• Greater certainty of reliability; and
• A delay to the procurement of batteries /super capacitor technology. If wire-free operations are
required for subsequent parts of the light rail network, battery technology acquired at that time will
be further advanced.
The exact number of LRVs to be procured will depend upon:
• Negotiations with Canberra Metro and the cost of each LRV. The cost per LRV will vary depending
upon the total size of the production run, so it may be appropriate to purchase LRVs in excess of
the minimum needed for the Project (noting the intention to deliver Stage 2B in the future);
• The final operating parameters of the Project, including any wire-free requirements which could
necessitate an additional two LRVs due to extended journey times; and
• Program implications, production run timing and service level implications on City to Gungahlin
Light Rail should wire-free running (and therefore retrofitting of the existing fleet with battery
technology) be required.
All new LRVs will be similar in size and performance to City to Gungahlin Light Rail LRVs but not
necessarily identical, to achieve any improvements in technology. These LRVs will have:
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• Capacity to carry at least 200 people;83
• Level boarding at all doors, priority seats for mobility impaired passengers and designated areas for
wheelchairs and pushchairs;
• Internal spaces for four bicycles;
• A Wi-Fi service, free for the use of passengers; and
• A PA system for announcements.
The LRVs can also have an additional module added that would increase the length of the vehicle to 45
metres, and increase the capacity to more than 300 people. Development of new stops on the alignment
will need to be mindful of provisioning for this potential addition in the future. Figure 5-8 illustrates the City
to Gungahlin Light Rail LRVs, with the Project’s LRVs likely to be similar in appearance and design.
Figure 5-8: City to Gungahlin Light Rail light rail vehicle
Each LRV will have real-time Passenger Information Displays (PIDs), which will display the next few stops,
the expected journey time, an accurate clock, the connecting services available from the next stop and a
space for any messages required as shown in Figure 5-9.
83 At Added Weight 3 loading – 4 per m2
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Figure 5-9: Indicative real-time PID
Note: the image above is indicative only and is subject to change.
5.6 Transport system integration
A key vision for ACT’s transport network, which has recently undergone significant transformation, is for it
to be an integrated network based on a seven day frequent network (see Section 2.5.5), which enables
Canberrans to plan and enjoy seamless, multi-modal travel.
An integrated transport and land use network will consider the services and facilities needed for successful
whole-of journey and interchange experiences. Journeys will be seamless, with improved physical
infrastructure for Bike & Ride, Park & Ride and public transport interchange. Active modes should be
prioritised highly by establishing a permeable footpath and bicycle network that provides a direct
connection to light rail stops from surrounding destinations and suburbs.
City to Gungahlin Light Rail and the Project will operate as a single line offering a single seat journey for
passengers from Gungahlin to Commonwealth Park, with no transfer required at the Alinga Street Stop in
the City.
Bus network integration
This Business Case does not seek approval for changes to the bus network with the introduction of the
Project. It is recommended that the ACT Government consider changes to the bus network to complement
the Project prior to the commencement of operations. This will enable the ACT Government to take into
account:
• Experiences from the introduction of City to Gungahlin Light Rail into service;
• Community consultation feedback closer to the date of the project operational commencement; and
• Experiences from the introduction of the new bus network in 2019.
However, any changes to the network would be subject to the principles outlined in the Integrated
Transport Strategy,84 as set out below:
• Maintaining an all-day, seven-day network;
• Having a legible ‘grid’ of frequent service routes;
84 Transport Canberra and City Services, ‘Moving Canberra 2019-2045: Integrated Transport Strategy’, https://www.yoursay.act.gov.au/moving-canberra, 2018
• Reallocation of resources into improved frequency of the core network; and
• A simple, future-ready, more legible overall network.
The City Interchange, an on-street facility located on Alinga Street, East Row and Mort Street, will serve as
a focal point of the Canberra light rail network and will allow customers to interchange between light rail
and all buses that enter the city centre. It will also provide easy access to the nearby coach station,
allowing intercity passengers to transfer easily to light rail services. The Alinga Street Stop is located
adjacent to the City Interchange.
5.7 Civil infrastructure
Track
The track for the Project will run on either road medians or existing road lanes.
Extending from the existing southern terminus on Alinga Street, the route alignment will run down the
central median of Northbourne Avenue through the intersection at London Circuit. It will continue along the
west side of London Circuit between Northbourne Avenue and Commonwealth Avenue, travelling in the
centre of the road.
This Business Case assumes that London Circuit is raised to meet Commonwealth Avenue at a newly
formed signalised intersection, with approval for those works being sought as part of a separate Business
Case. Light rail will traverse the intersection, turning right onto Commonwealth Avenue.
Track will run along the median of Commonwealth Avenue to the terminus stop at Commonwealth Park,
expending approximately 150m further to facilitate a turn back for LRVs to reverse direction.
Structures
The key structure on the Project route is the Commonwealth Avenue bridge over Parkes Way as depicted
in the figure below. It is anticipated that light rail will cross Parkes Way on a new bridge structure to be built
in the median between the two existing Commonwealth Avenue bridges over Parkes Way.
Figure 5-10: Light rail bridge across Parkes Way (indicative)
Depot
The City to Gungahlin Light Rail maintenance and stabling facility and depot in Sandford Street, Mitchell is
of sufficient size to accommodate the additional four LRVs to operate a north-south light rail route from
Gungahlin to Commonwealth Park. The existing facilities were designed with expansion of the network in
mind.
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Minimal works are required within the existing depot site, including a new stabling road to accommodate
the four additional LRVs. There may be benefit in expanding the depot as part of Stage 2A to cater for the
fleet requirements for City to Woden Light Rail as outlined in Chapter 6.0.
Roads
Integrating light rail into Canberra’s existing road network will necessitate changes to the road network,
particularly at intersections along the route alignment. Kerb widening, lane adjustments and modifications
to existing intersections and new intersections will be required. Changes will generally comprise:
• Modifications to intersection layouts, such as at London Circuit and Northbourne Avenue;
• Removal of non-signalised right-turns across the light rail tracks;
• Changes to property access;
• Removal of parking areas;
• Removal of vehicle access, such as between Gordon Street and Edinburgh Avenue on London Circuit;
and
• Introduction of signalling.
Significant changes to road layout, signalling and pedestrian walkways are described in greater detail in the
following table.
Table 5-4: Significant road upgrades required for the project
Location Existing
arrangement
Proposed arrangement
Northbourne Avenue
and London Circuit
Signalised
intersection
Installation of turning lanes for northbound and southbound
traffic on Northbourne Avenue. This requires an adjustment
to signal phasing and road widening works.
London Circuit between
Gordon Street and
Edinburgh Avenue
Open Road This portion of the road is proposed to be a shared zone.
London Circuit Right turns
permitted
The ability to turn right on London Circuit to side roads will be
removed for most roads, apart from onto Gordon Street
westbound and Edinburgh Avenue eastbound.
Access between
Commonwealth Avenue
and London Circuit
Signalised
intersection
(proposed)
As outlined in Section 5.7.4.1, this Business Case assumes
that London Circuit will be raised to be at-grade with
Commonwealth Avenue intersection (with approval for those
works being sought as a separate Business Case).
The ability to turn right from Commonwealth Avenue
northbound to London Circuit eastbound will not be
permitted.
5.7.4.1 London Circuit / Commonwealth Avenue Intersection
Consistent with the National Capital Plan (NCP), the ACT Government has made a clear commitment to
the urban renewal of its city centre as outlined in Canberra: A Statement of Ambition and The City Plan.
The City Plan outlines the overarching strategic and spatial framework for the city centre and imagines
London Circuit as the city’s high street with generous verges, street trees and activated street frontages
underpinned by a mix of residential, commercial and retail activity.
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The City Renewal Authority has undertaken planning, design, economic and financial analysis into the
modification of the London Circuit / Commonwealth Avenue intersection to raise the southern portion of
London Circuit so it and Commonwealth Avenue are at-grade. The at-grade configuration would allow for
street grade development of the adjacent sites, including the eventual removal of the south-west and south-
east cloverleaves that connect Parkes Way, London Circuit and Commonwealth Avenue to allow for mixed
use development.
The City Renewal Authority’s proposed scope of works includes planning and design, traffic management,
landscaping, street lighting, utilities and civil works (though separate costings developed by the City
Renewal Authority do not include light rail associated costs).
A concept plan for the intersection is outlined in Figure 5-11 below.
Figure 5-11: London Circuit / Commonwealth Avenue at-grade concept plan85
It is assumed for the purposes of this Business Case that London Circuit is raised to meet Commonwealth
Avenue (with approval for those works being sought as part of a separate Business Case) and a signalised
intersection is formed. Consequently, the Project’s route alignment travels along the median of London
Circuit, to the median of Commonwealth Avenue through the at-grade intersection.
5.8 Power transmission and substations
The preferred traction power system for the project is an overhead wire (OHW) system. This Business
Case – and importantly the Project Outturn Cost in Chapter 6.0 – are based on an OHW system for all of
Stage 2A.
However, it should be noted that NCA planning conditions may necessitate wire-free running in certain
visually sensitive areas within the NCA Designated Areas. The JSC recommended, and the
85 This diagram represents a long term City Renewal Authority plan. It should be noted that the removal of the cloverleaf on the west side of Commonwealth avenue between London Circuit and Parkes Way is not a requirement for this Project
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Commonwealth Government agreed, that any light rail on or crossing Commonwealth Avenue, Kings
Avenue, State Circle, Brisbane Avenue, Sydney Avenue, Canberra Avenue (to Manuka Circle), Hobart
Avenue, Melbourne Avenue, Adelaide Avenue (to Kent Street) and in the Parliamentary Zone to be wire-
free. This spans part of Stage 2A and 2B and as such it is likely that to obtain approval for the Project
sections of wire-free running will be required.
The Project will use an overhead 750V DC power supply in the OHW areas. One new traction power
substation will be required for the Project. The substation (substation 6 taking into account substations
already used by the existing network) is proposed to be located in Commonwealth Park and is not on
Territory land. This will require negotiations with, and an arrangement to be agreed with, the
Commonwealth Government. The substation will be clear of existing civil infrastructure such as public
access ways and cycle routes.
The supply of a reliable, high quality power supply to this proposed substation is a technical requirement
that will be developed in liaison with Canberra’s electricity distribution service provider.
Figure 5-12: Proposed location of Commonwealth Park traction power substation
5.9 Systems infrastructure
The existing systems for City to Gungahlin Light Rail will be extended to maximise safety outcomes and
minimise cost impacts on the project’s operations and maintenance activities. Known and/or likely elements
of systems infrastructure works associated with the Project are outlined below.
Communications and passenger systems
To the extent possible, communications and passenger systems will have the same ‘look and feel’ to those
of City to Gungahlin Light Rail to ensure a consistent customer experience across the light rail network.
The objective of these systems will be to provide timely, safe and reliable transmission of voice, data and
video traffic from key operational locations throughout the light rail network. Systems will include:
• CCTV: There will be CCTV at light rail stops and on LRVs to support a high level of security and
ensure a safe environment for customers;
• Ticketing: The smartcard ticketing system on ACT Government buses will also cover the light rail
network. It will be a tap on, tap off system at each stop, as opposed to buses, where it is on board
the vehicle. Other forms of ticketing, such as use of smartphones and credit cards, are being
considered by the ACT Government;
• Passenger Information Displays (PIDs): Every stop will be provided with PIDs that are visible and
legible from anywhere on the platform. These PIDs will display the destination and expected
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departure time of at least the next two services, an accurate clock, and will have space for a free-
form text information message (see Figure 5-9);
• Website: Transport Canberra and City Services will provide a website incorporating a real-time
journey planner and timetable information. Printed timetable and fare information will be available
and displayed on every platform; and
• Wi-Fi: Stops and LRVs in service will be equipped with a Wi-Fi service, free for the use of
passengers.
Signalling
The Canberra light rail system will operate on a line-of-sight basis. As with a road vehicle, it will be the light
rail driver’s responsibility to observe the route ahead and stop before any obstruction. Accordingly, no
signalling system is required to maintain separation between LRVs proceeding in the same direction. At
certain locations signalling will be required to manage potential conflicts between LRVs and road vehicles
at intersections, provide safe pedestrian access to stops and enable light rail operations to achieve the
required journey times.
Modelling of the optimum configuration of signals has been undertaken to minimise LRV waiting times and,
where possible, minimise the impact on users of other modes of transport and pedestrians. New traffic
signals are proposed at several locations (subject to the procurement process). Light rail will be given
signal priority at intersections.
The table below provides an overview of the intersections that will be impacted by the Project, highlighting
where existing signals will be modified and new signals are proposed.
Table 5.9: Proposed signalised intersection
Proposed signalised intersection Currently Signalised (Y/N)
Northbourne Avenue / Alinga Street Y
Northbourne Avenue / London Circuit Y
London Circuit / West Row N
London Circuit / Hobart Place N
London Circuit / Knowles Place (N) N
London Circuit / University Avenue N
London Circuit / Knowles Place (S) N
London Circuit / Farrell Place N
London Circuit / Gordon Street Y
London Circuit / Edinburgh Avenue Y
London Circuit / Commonwealth Avenue N
Commonwealth Avenue (City South Stop) N
Commonwealth Avenue (Albert St north pedestrian crossing) Y
Commonwealth Avenue / Corkhill Street N
5.10 Scope of services
Table 5-5 summarises the main services that will be required post-commissioning of the Project. The scope
of some features may change once the Project capital works components are finalised.
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Further information on the operational requirements for the Project are contained in Section 5.5.
Table 5-5: Post-commissioning services to be procured
Service Description
Light rail operations
All aspects of light rail operations for the operating term including:
• Passenger services including driver operations, safety management, customer services and revenue protection;
• Communications and rail control systems including rail systems, stop systems, phone systems, passenger information displays (PIDs), public address and Emergency Help Point systems, supervisory control and data acquisition, signalling, control centre and LRV systems;
• HV and LV power supplies;
• Substations and traction power reticulation;
• Central storage of all required data and data interfaces with the Territory; and
• Other associated light rail operational services.
The ACT Government will maintain responsibility for ticketing systems, including revenue collection, but the operator will be required to provide necessary supporting infrastructure (including power, data and equipment space provision).
It is anticipated that the operating term will be aligned to end with the conclusion of the City to Gungahlin Light Rail PPP operating term (in 2038).
Light rail maintenance
All aspects of light rail maintenance for the operating term, including:
• Maintenance of LRVs;
• Depot maintenance;
• Track, communications, signalling (except at intersections), stops and associated infrastructure (e.g. any rail pedestrian crossing infrastructure) maintenance;
• Substation and overhead line equipment;
• All rail infrastructure on bridges but not the structures themselves. Noting that the responsibility for maintenance is likely to be split between the O&M provider, the Commonwealth and the Territory depending on the asset owner, proximity to the corridor and maintenance requirements;
• Landscape maintenance; and
• Stop and vehicle cleaning.
Finance Subject to future decisions of Cabinet, private sector financing may be in place for the duration of the concession term, subject to capital contributions made by ACT Government (see Chapter 8.0).
Other services
As the ACT Government will seek innovative solutions to reduce cost and risk, enhance design or improve customer service outcomes, other services may fall within the final procurement scope to the extent that such services provide added value to the Project. An example may be the management of retail services at stop locations.
5.11 Stage 2B: Commonwealth Park to Woden
As noted above, the Project is the first component (Stage 2A) of City to Woden Light Rail, with the ACT
Government committed to deliver Stage 2B to Woden as soon as practicable.
Stage 2B will enhance the urban renewal benefits of Stage 2A, particularly in and around the Woden Town
Centre, improving connectivity between north and south Canberra and connecting key employment,
residential and commercial hubs with a convenient and high quality light rail network.
This section provides an overview of the key features of Stage 2B.
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Patronage and travel times
Transport modelling has been used to estimate the anticipated daily patronage for the full City to Woden
Light Rail (Stage 2A and 2B) corridor in 2026 and 2046. The anticipated travel times and patronage
numbers are outlined in Table 5-6. It should be noted that these patronage figures are only a forecast, and
actual patronage may differ substantially from these estimates.
Table 5-6: Proposed stop locations, type and access arrangements
City to Woden corridor
(Stage 2A and Stage 2B)
Estimated travel time (minutes) 25 to 30
Estimated daily patronage (2026)86 13,900
Estimated daily patronage (2046)87 23,000
86 The patronage figure refers to the increase in light rail boardings that occur following the commencement of operations after the completion of Stage 2B. Figures are rounded to the nearest hundred boardings
87 The patronage figure refers to the increase in light rail boardings that occur following the commencement of operations after the completion of Stage 2B. Figures are rounded to the nearest hundred boardings
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Light rail stops
The stops for Stage 2B will have similar design and accessibility features to those of 2A and City to Gungahlin, and have been chosen based on proximity to activity
centres and precincts, transport connectivity, place making opportunities and key attractors. The location of each stop along the proposed 2B route alignment is
detailed in Table 5-7. Stop locations are indicative and subject to change due to design and operating requirements, approvals and further technical analysis. The
stop at Commonwealth Park is not included as it is constructed as part of Stage 2A. Figure 5-13 provides an overview of areas within the walking catchment of
proposed stop locations.
Table 5-7: Proposed stop locations, type and access arrangements
Stop Location Type Access
Albert Hall
The stop will be at the
southern end of
Commonwealth Avenue
adjacent to Albert Hall.
Island The stop will be accessed from a new signalised pedestrian crossing
adjacent to Kaye Street. The two side platforms will be boarded from one
end only.
Figure 5-7 depicts the key sites within a 5 and 10 minute walk of the stop,
including Albert Hall, the National Library and the Treasury.
Depending on the route option, the stop will function as the primary stop
servicing Questacon and the National Library.
In the future a (potentially autonomous) shuttle could run between Albert
Hall and Kings Ave to provide enhanced connectivity to key features
within the Triangle that are beyond a 5-minute walk (for example, the
National Gallery of Australia).
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Stop Location Type Access
Kings Avenue
This stop is located on the
inside of State Circle,
south of Kings Avenue.
To be confirmed
following further
technical analysis
and design
The stop will be accessed from the existing signalised road crossing at
Kings Avenue. This stop is a short walk to both Parliament House, and
part of the Barton employment precinct (within 5-10 minutes). Figure 5-13
depicts the key sites within a 5 and 10 minute walk of the stop.
Sydney Avenue
This stop is located on the
inside of State Circle,
opposite Sydney Avenue.
To be confirmed
following further
technical analysis
and design
The stop will be accessed from the existing signalised road crossing. This
stop is a short walk to the Barton employment (for example, 5,000 people
work in the DFAT building) and residential precinct and a large portion of
the Parliamentary Triangle (within 5-10 minutes). Figure 5-13 depicts the
key sites within a 5 and 10 minute walk of the stop.
Melbourne
Avenue
This stop is located on the
inside of State Circle, east
of Melbourne Avenue.
To be confirmed
following further
technical analysis
and design
The stop will be accessed from the existing signalised road crossing at
Melbourne Avenue. This stop is a 5-10 minute walk to the Deakin and
Forrest residential area.
The stop would provide an effective access point for Parliament House,
but could only be accessed via staff due to pass card requirements.
Figure 5-13 depicts the key sites within a 5 and 10 minute walk of the
stop.
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Stop Location Type Access
Hopetoun
Circuit
The stop will be located
at Adelaide Avenue,
adjacent to the Hopetoun
Circuit overbridge.
The stop will function as
the primary stop for
Deakin and south
Yarralumla.
Island platform The stop will be incorporated into the Hopetoun Circuit overbridge and
intersection. It will be accessed via a stair and elevator from Hopetoun
Circuit to the centre island platform.
The Deakin shops are a 400m, 5 minute walk away. Kiss and ride and
bicycle parking opportunities will be provided.
Pedestrian and cycle integration with the stop will be a key part of
ensuring that the stops are well used by the local community. This
may include the provision of bike storage facilities.
Kent Street
The stop will be at
Adelaide Avenue
adjacent to the Kent
Street overbridge.
The stop will function as
the primary stop for areas
of West Deakin.
Island platform The stop will be incorporated into the Kent Street road bridge and
intersection. It will be accessed via a stair and elevator from Kent
Street to the centre island platform.
Kiss and ride and bicycle parking opportunities will be provided.
Pedestrian and cycle integration with the stop will be a key part of
ensuring that the stops are well used by the local community. This
may include the provision of bike storage facilities.
Carruthers
Street
The stop will be located
at Yarra Glen, adjacent to
the Carruthers Street
overbridge.
It will function as the
primary stop for Curtin,
north Hughes and south
Deakin.
Island platform The stop will be incorporated into the Carruthers Street road bridge
and intersection. It will be accessed via new pedestrian overpass. The
location of the overpass on the northern side of Hopetoun Circuit will
provide better east west connections than the current thin path on the
bridge. The existing path on the southern side of the bridge is wider,
therefore balancing pedestrian accessibility on either side of the road.
The Curtin shops are a 400m, 5 minute walk away. Kiss and ride and
bicycle parking opportunities will be provided.
Pedestrian and cycle integration with the stop will be a key part of
ensuring that the stops are well used by the local community. This
may include the provision of bike storage facilities.
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Stop Location Type Access
Philip Oval
The stop will be located
in an existing road
easement south of
Melrose Drive, adjacent
to the existing drainage
channel.
Side platform,
off-road
The stop will be accessed via a shared path from Melrose Drive and
Launceston Street, with future connections across the culvert to be
further assessed.
The catchment for the stop includes Philip Oval and the Sports
Centre, Canberra College and several residential developments that
are planned or likely in the immediate vicinity.
A Park and Ride will be provided at Philip Oval.
Yarra Glen roundabout works could enable an effective connection to
the Hughes Shops located less then 800m away from this stop
Woden
Terminus
The stop will be located
at Callam Street opposite
Bowes Street.
The stop will function as
the primary stop for the
Woden Town Centre and
will be integrated with the
bus interchange.
Side platform /
Bus interchange
The stop will be highly visible on Callam Street opposite Bowes
Street. It will be accessed by a signalised pedestrian crossing on
Callam Street at one end of the stop only.
Callam Street will be closed to general road traffic (except buses,
LRVs and emergency vehicles) between Bowes Street and Bradley
Street. This will consolidate bus and light rail infrastructure onto
Callam Street, providing a ‘transit mall’ that allows for public transport
transfers and frees up space elsewhere for development and
activation.
Connectivity to the Woden Town Centre will be via new footpaths.
The cost estimate contained within this Business Case is an estimate only and is not based upon final
Project design (which will only occur following the Project’s procurement process if the Project proceeds).
The ultimate cost associated with the Project will be a function of many factors, including:
• Final Project scope and the ACT Government’s Project requirements during the procurement process;
• Market capacity and other infrastructure projects underway; and
• The allocation of risk between parties and the realisation (or otherwise) of such risks.
The following Chapter outlines the cost estimate for the Project considered in this Business Case and
outlined in Chapter 5.0.
Assumptions underlying the cost estimate are detailed in the Assumptions Book at the end of this
document.
6.2 Project Outturn Cost estimate
The estimated Project Outturn Cost to deliver the Project has been calculated in two stages:
• The ACT Government engaged an expert and well-regarded cost estimation firm with deep, recent
Australian light rail experience to calculate a non-risk adjusted base cost estimate. This firm also
produced the opex / whole of life costs noted in this Business Case. That cost estimation firm
calculated its estimate based upon:
• A definition design generated by technical advisors;
• Discussions with Major Projects Canberra and its technical advisors regarding proposed features
of the light rail system; and
• Its market knowledge regarding rates and other costs.
• A risk (contingency) figure was estimated by the ACT Government’s commercial advisors following:
Key messages
• Estimated total Project outturn costs (nominal, P75) are including contingency but
excluding:
o Potential additional Project scope elements, such as additional light rail vehicles, costs associated with wire-free running and additional works at the Mitchell depot; and
o Separate projects, including the raising of London Circuit (if approved) and the construction of the Sandford Street Stop in Mitchell.
• Agency costs to support the delivery of the Project are not included in the abovementioned Project outturn cost. Agency costs will be subject to ordinary budget approval processes.
• Operating expenditure (including ongoing operations, maintenance and lifecycle costs) associated with the first full financial year of operations is anticipated to amount to approximately , (including
contingency) (nominal, P75).
• The cost estimations in this Chapter do not represent a Project budget.
111
• The receipt of inherent risk percentages to reflect cost estimation risk supplied by the cost
estimator;
• Contingent risk identification, allocation and quantification workshops conducted in conjunction
with Major Projects Canberra and its advisors; and
• Monte Carlo analysis conducted on risk figures (contingent and inherent) generated during the
foregoing workshops.
Based upon those cost and risk estimation processes, the anticipated Project outturn cost for the Project is
The Project outturn cost to construct Stage 2A is made up of:
• total alignment costs, of which the most significant contributors are preliminaries and signalling,
rail systems and power which represent and of the total alignment cost respectively;
• escalation; and
• contingency. This contingency figure is at a P75 level (discussed in further detail in Section 6.4).
89 Before escalation and contingency
112
Profile of capital cost
The following figure shows the anticipated profile of Project outturn costs as per the breakdown of the
capital cost provided by the cost estimator. The primary axis represents the expenditure for each category
and the secondary axis represents the cumulative Project Outturn Cost over the period.
The figure highlights that construction activity peaks in 2022 Q3.
Cost exclusions
Excluded from the cost estimate are:
• Scope exclusions:
o Items outside the project scope, such as expansion of Mitchell Depot, the cost of retrofitting
the existing fleet with wire-free technology, a Sandford Street stop in Mitchell and
environmental offsets. These cost components can be found in Section 6.2.3;
o Stage 2B costs, including ‘early contractor involvement’ costs associated with progressing
planning and design for Stage 2B to Woden;
o Any costs associated with raising London Circuit at Commonwealth Avenue;
113
o The construction of the ramp from London Circuit to Commonwealth Avenue, which is not
required assuming the reconfiguration of the intersection to be at-grade; and
o Other road works which may be beneficial to the Project.
• Internal and procurement cost exclusions:
o Internal ACT Government and advisory costs (including legal costs, independent certifier and
Major Projects Canberra or Transport Canberra and City Services agency costs);
o Costs associated with renegotiating City to Gungahlin Light Rail contract arrangements or
costs associated with a revised City to Gungahlin Light Rail payment mechanism;
o Costs associated with a delayed start to the Project due to longer than anticipated
Commonwealth Government approval processes; and
o Any costs associated with amending the procurement approach during the Project’s
procurement phase, bid costs and costs associated with alternative procurement approaches
should the recommended approach prove unsuccessful.
Additional scope elements
The Project Outturn Cost outlined above excludes a number of scope items, that either are (i) not strictly
necessary for the operation of Stage 2A, (ii) attributable to the City to Gungahlin route alignment or (iii) may
be required following further Project development or consultation. An overview of these elements and the
relevant considerations of potentially procuring them in conjunction with Stage 2A are outlined in the table
below. Capital costs and contingency figures are indicative and subject to further refinement.
Table 6-2: Indicative cost of additional scope or separate projects ($m, nominal, P75)
Scope element Relevant considerations of procurement in Stage 2A Estimated cost
Additional four
LRVs
• May provide opportunities for cost efficiencies and economies of scale in the
production run, leading to a lower cost per vehicle;
• Assist in minimising impacts on City to Gungahlin Light Rail should wire-free
running be required by the NCA to obtain planning approvals (see below); and
• May provide additional flexibility to ensure headways are met should Mitchell
Stop be constructed (see below), or increased headways are proposed for City
to Gungahlin Light Rail.
Depot expansion • Provide flexibility to accommodate any additional fleet purchased by the ACT
Government (see above)
Wire-free running
and urban design
finishes
• The JSC recommended, and the Commonwealth Government agreed, that
any light rail on or crossing Commonwealth Avenue, Kings Avenue, State
Circle, Brisbane Avenue, Sydney Avenue, Canberra Avenue (to Manuka
Circle), Hobart Avenue, Melbourne Avenue, Adelaide Avenue (to Kent Street)
and in the Parliamentary Zone be wire-free. This spans part of Stage 2A and
2B. As such it is likely that to obtain approval for City to Woden Light Rail
sections of wire-free running will be required;
90 Contingency has been included on a proportional basis. A bottom up risk assessment has not been undertaken
91 Contingency has been included on a proportional basis. A bottom up risk assessment has not been undertaken
92 This is a high level estimate that refers to costs associated with the fitting of on-board energy storage systems to LRVs. It does not include the purchase of any additional LRVs that may be required should wire-free running be necessary. It is likely that wire-free running requirements would result in other additional costs (e.g. charging stations) being incurred, but may also result in costs currently in the Project scope not being required (e.g. overhead catenary). Contingency has been included on a proportional basis. A bottom up risk assessment has not been undertaken
114
Scope element Relevant considerations of procurement in Stage 2A Estimated cost
• As was the case with City to Gungahlin Light Rail, higher standard urban
design finishes (when compared to light rail projects in other cities) are likely to
be required to meet the NCA’s standard to obtain Works Approval;
• Will support urban amenity outcomes;
• Cost includes batteries on new LRVs and retrofitting of the existing fleet; and
• The extent of any requirement for wire-free running may also increase journey
times and necessitate the procurement of up to an additional two LRVs.
Sandford Street
Stop in Mitchell
• May facilitate earlier delivery of the ACT Government commitment to construct
a light rail stop at Sandford Street in Mitchell;
• Potential to minimise procurement and agency costs by procuring these works
as part of a larger package; and
• Potential for construction and consequently cost efficiencies in delivering the
works as part of a larger package.
Environmental
offsets
• Likely to be required to meet regulatory and planning approvals.
Total additional scope cost
Project Outturn Cost estimate notes
The following is noted regarding the Project Outturn Cost estimate:
• The Project Outturn Cost does not represent a Project budget. It represents an estimate of Project
outturn costs only. A Project budget shall only be finalised following completion of the Project’s
procurement process;
• The estimate is based upon the Project’s Definition Design;
• Any apparent errors in summation are due to rounding;
• There exist several risks and mitigation strategies associated with the Project which may impact upon
the ultimate Project cost;
• Escalation allowance has been calculated by the cost estimator, based on a mix of materials’ indices;
and
• The expected Project outturn cost incorporates a P75 risk adjustment. This has regard to the extent of
work undertaken on the Project to date, including various concept and definition design iterations. The
full anticipated risk profile associated with the Project is summarised below in Section 6.4.
Benchmarking
Capital cost benchmarking of light rail projects is an especially challenging task, as:
• There is comparatively little cost information publicly available at a detailed level. This makes it difficult
to determine whether projects are being compared on a like-for-like basis. For example, it is not always
94 This is a high level indicative estimate of the potential environmental offset required and is subject to further analysis
115
apparent whether items such as rolling stock, depots and utilities relocation have been included in
publicly available figures;
• Projects may have very different physical characteristics (e.g. bridges, tunnelling) which substantially
impact the cost per kilometre of the system;
• Some costs may be included in other light rail projects which are not strictly a direct component of the
light rail Project; and
• Light rail projects may involve route extensions or conversion of heavy rail lines, further complicating
the ability to make like-for-like cost comparisons.
Nevertheless, in determining the cost estimate contained above, the Project’s cost estimator has had
regard to confidential benchmarking data.
Comparison to City to Gungahlin cost estimate
Care should be taken when comparing the cost per kilometre for the Project to that of the City to Gungahlin
project. While the Project has a higher cost per kilometre when compared to City to Gungahlin Light Rail,
this comparison does not account for a number of important factors, including:
• Passage of time: due to the passage of time, costs have been subject to escalation since City to
Gungahlin Light Rail’s cost was agreed. On top of this, the large number of projects in planning or
delivery on the east coast (see Figure 8-3) has impacted on demand for key inputs and anticipated
escalation rates;
• Complexity: the Project requires the construction of a large structure, the bridge over Parkes Way
(detailed above). City to Gungahlin Light Rail did not require any large structures. Furthermore, Stage
2A reflects predominantly running along what is currently a street (as opposed to median) environment;
• Scale: the smaller scale of the Project at 1.7km, when compared to City to Gungahlin Light Rail at
12km, may impact on the achievement of economies of scale; and
• Contingency: to account for the increasing complexity of the Project, particularly in relation to planning
and approvals and interfaces with surrounding Projects in and around the route alignment (see Section
8.2.3), the Project has a larger proportional contingency when compared to City to Gungahlin Light
Rail.
6.3 Operating cost and whole of life expenditure estimate
The operation and mobilisation periods assumed for the purposes of this Business Case are outlined in
Table 6-3.
Table 6-3: Indicative operating period assumptions for analysis only95
Assumption Value
Operator mobilisation period Four months prior to the commencement of operations
Operations start date 2024
Operations end date96 August 2038
95 It should be noted that changes to these timing assumptions will impact on the nominal figures reported in this Chapter
96 The operations end date for the Project will coincide with the conclusion of the existing City Gungahlin Light Rail concession period for the purposes of the cost and financial analysis
116
First year of operations opex estimate
Operations, maintenance and lifecycle costs relating for the first year of operations for the Project are
shown in Table 6-4.
Table 6-4: Project Opex cost estimates – first year97 of operations ($m, nominal, P75)
Cost area Cost
Salaries and wages
Depot / Stabling Costs
Operations and General Costs
Electricity Supply
Special Events
Total Operating Costs
Vehicle maintenance costs
Infrastructure Maintenance
Total Maintenance Costs
Lifecycle Costs
Subtotal
Contingency
Total Opex
Salaries and wages are the most significant component of opex in the first year of operations, at 30%. As
operator mobilisation occurs in the four months prior to the commencement of operations it is not included
in this table.
97 This has been calculated as the first 12 months of operations (i.e. not financial year)
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Whole of life opex cost estimate
The table and figure below outlines the operating, maintenance and lifecycle costs over the operational period for the Project.
Table 6-5: Operating, maintenance and lifecycle costs ($m, nominal, P75)
Cost area FY202498 FY202599 FY2030 FY2035 FY2038100 Whole of
Life
Operating Costs
Operator
Mobilisation
Maintenance
Costs
Lifecycle Costs
Total Operating
Cost
Contingency
98 Operator mobilisation occurs four months prior to the commencement of operations
99 First full financial year
100 Final full year of the O&M contracted term
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Cost area FY202498 FY202599 FY2030 FY2035 FY2038100 Whole of
Life
Total risk
adjusted cost
The table and figure above highlight the growth in operating, maintenance and risk over the period in
accordance with escalation and the variable profile of lifecycle costs in accordance with the assets’
expected useful lives.
Significant lifecycle costs occur periodically, with peaks in . As the operating
period is assumed to conclude in August 2038, there is only two months of operational cost in the final year
of operations assumed for this analysis, resulting in the lower expenditure in that year.
6.4 Project contingency
Contingency was calculated in line with the approach outlined in Section 6.2 on a different (and larger
Project scope). The contingency, as a proportion of capital cost, that was estimated has been used to
determine the Project contingency for the Project scope outlined in this Business Case. As such this figure
is an indicative estimate only. The current Project scope should be subject to a bottom up risk assessment.
The process for determining contingency for the larger project scope is outlined below.
The ACT Government hosted a series of risk allocation and quantification meetings to inform the Project’s
development.
Those meetings sought attendee input into:
• The likelihood of a risk event occurring;
• The likely cost and programme impact of a risk event occurring; and
• The likely distribution around anticipated cost and programme impacts.
Mote Carlo simulations were then applied to estimate the uncertainty levels and probability distributions
associated with the Project. This risk analysis will also help inform future procurement activities.
The process resulted in the determination of the Project’s P50, P75 and P90 construction and operation
risk estimates. This was then applied proportionally to the Project scope outlined in this Business Case.
The results are outlined in Table 6-6 and Table 6-7 respectively.
Table 6-6: P50, P75 and P90 Project outturn cost estimates (LHS, $m, nominal) and contingency as a proportion of capital cost (RHS, %)
Cost area P50 P75 P90
Capital Cost
Contingency
Contingency % of Capital Cost
Total Project outturn cost
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Table 6-7: P50, P75 and P90 opex cost estimates (LHS, $m, nominal) and contingency as a proportion of operating cost (RHS, %)
Cost area P50 P75 P90
Operating Cost
Contingency
Contingency % of Operating Cost
Total Opex
The Project contingency is predominantly driven by the following risks:
• Risks associated with Commonwealth planning approvals and environmental approvals for the Project;
and
• Risks associated with third party developments that may impact on the Project, including the raising of
London Circuit, land developments such as Section 63 and the Acton Waterfront, as well as road and
other infrastructure upgrades.
More information on the Project’s risks is outlined in Section 8.2.3.
The presentation of the P75 figure for the Project outturn cost in Section 6.1 (as opposed to a P50, P75 or
another figure) followed consideration of a range of factors, including works performed to date in
developing this Business Case, an assessment of the anticipated approach of bidders to the procurement
process and planning approval complexities.
The overall risk adjusted capital expenditure distribution profile is shown below. This histogram represents
the distribution of potential risk outcomes (from a capital expenditure point of view) which may impact on
the Project. In this regard:
• P50 is a mid-point estimate. It represents the Project cost with sufficient risk provision to provide a 50%
level of confidence in the outcome i.e. that there is a 50% likelihood that the Project cost will not be
exceeded;
• P75 represents the Project cost with sufficient risk provision to provide a 75% level of confidence in the
outcome i.e. that there is a 75% likelihood that the Project cost will not be exceeded. In other words, it
represents an estimate that has a 25% chance of being exceeded; and
• P90 represents the Project cost with sufficient risk provision to provide a 90% level of confidence in the
outcome i.e. that there is a 90% likelihood that the Project cost will not be exceeded. In other words, it
represents a conservative position, one that has an anticipated 10% chance of being exceeded.
The Monte Carlo simulation of P50, P75 and P90 construction risks is outlined below, depicting a relatively
normal distribution.
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Figure 6-3: Monte Carlo simulation of P50, P75 and P90 construction risks ($m, real)
Revenue from operations (Farebox)
Under the contract, farebox revenue will be collected by the ACT Government. The operations phase will
therefore result in revenues from operations through ticket sales to customers which will form part of the
funding envelope. The following table outlines indicative potential revenues.
Table 6-8: Estimated farebox revenue (nominal)
Assumption Value
Estimated daily patronage (2026) 2,709
Estimated daily patronage (2036) 3,506
Inferred compound growth in patronage based on 2026 and 2036
patronage figures (Note 1) 2.61%
Estimated average fare per trip ($2019) (Note 2) $1.27
Daily/annual multiplier (to convert average daily patronage to annual) 315
Estimated annual patronage revenues in first full year of
operations (Nominal, $m in FY25) $1.0
Estimated net present value of revenues from FY25 to FY39
($m)101 (Note 3) $16.8
Source: Major Projects Canberra and Transport Canberra and City Services assumptions on estimated
daily fare, considering an escalation rate of 2.5%.
Note 1: Based on a FY19 model commencement point. These are light rail revenues based on estimated
light rail patronage in 2026 and 2036. This does not consider fare sharing arrangements between bus and
101 Totals represent additional patronage expected following the commencement of Stage 2A operations
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light rail trips and does not consider offsetting changes in bus patronage over the period as this will be
considered separately.
Note 2: Estimated fare per trip in $2019 of $1.69 based on the Transport Canberra and City Services
average fare for a MyWay journey between April 2019 and March 2019. This figure was reduced by 25%
as proxy for potentially free interchanges between bus and light rail, resulting in a reduced figure of $1.27
noted in the table above.
Note 3: Discounted at 3.2%. The discount rate has been calculated as per the Infrastructure Australia
Discount Rate Methodology guidelines, and updated as per the new Treasury guidance that requires usage
of the Commonwealth bond rate with appropriately matching maturity and premium as the base for the
Treasury risk-free rate. ACT Treasury guidelines have been developed based on the precedent discount
rate methodologies and common practice in other jurisdictions.
Figure 6-4: Estimated nominal cash flow generated from patronage (years are FY ending 30 June)102
Other costs
The ACT Government may incur Project related costs which will not be included in the contracted amounts.
In this regard:
• The ACT Government may, at its discretion, consider the provision of partial bid cost reimbursements if
the Project does not proceed or for intellectual property; and
• The ACT Government will incur costs during the procurement, construction and operational phases of
the Project which are not passed to third parties (for example, costs associated with independently
certifying construction works). These costs will be:
o In part influenced by commercial principles adopted during the procurement process;
o Subject to the realisation or otherwise of risk events during the procurement and delivery
process; and
o A function of ordinary budget discussions from year to year. The apportionment of costs as
either capital or operating expenditure is subject to future assessment.
102 The graph only includes to the end of 2038 as this is the last expected full financial year of the operating term
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6.6 Indicative Stage 2B and Delay Costs
Delivery of Stage 2B will be the subject of a separate business case with future recommendations to
Cabinet once Commonwealth planning approval processes are further resolved.
Cost estimates for Stage 2B will be included in a future Business Case to Cabinet.
Indicatively however, inclusive of contingency and assuming delivery in the period FY2022 to FY2025, the
estimated Project outturn cost of Stage 2B may be in the region of (nominal, P75). Therefore, the
cost of the staged delivery of City to Woden Light Rail may be (nominal P75).
Both Stage 2A and Stage 2B may be delayed due to longer than anticipated Commonwealth Government
approvals processes or due to longer than anticipated timeframes to resolve commercial matters with the
Commonwealth. The table below provides an indication of additional project costs through escalation alone
that may be realised by Project delays (and assuming delays are incurred prior to a contract for the main
This Chapter outlines the results of the Cost Benefits Analysis undertaken to support the ACT
Government’s consideration of City to Commonwealth Park Light Rail (Stage 2A) as the initial component
in extending light rail south from the current terminus at Alinga Street to Woden.
In recognition of the ACT Government’s commitment to extend light rail to Woden and provide a north-
south public transport spine between Gungahlin and Woden, Major Projects Canberra has derived an
indicative blended benefit cost ratio (BCR) for:
• Gungahlin to Woden; and
• Gungahlin to Commonwealth Park.
Additionally, the economic appraisal outlined in this Business Case considers:
• City to Woden Light Rail via State Circle (Stages 2A and 2B); and
• City to Commonwealth Park Light Rail (Stage 2A).
An outline of the proposed timeline for the construction and operational commencement for Stage 2A and
Stage 2B and other important assumptions are outlined in subsequent sections of this Chapter.
The CBA assesses the range of costs and benefits accruing to transport users, operators, the Government
and the general community as a result of the two options. The benefits presented in this Chapter are split
into three categories:
• Transport;
Key messages
• The Project is the next phase of development of a north-south light rail spine between Gungahlin and Woden via the City.
• Major Projects Canberra has derived an indicative blended Benefit Cost Ratio, inclusive of wider economic benefits, between Gungahlin and Woden of 1.2.
• An indicative blended Benefit Cost Ratio, inclusive of wider economic benefits, between Gungahlin
and Commonwealth Park is also expected to be 1.2.
• The full City to Woden Light Rail route (Stage 2A and 2B) is expected to deliver $ m ($2019,
PV at 7%) in benefits over the 30-year appraisal period, comprising:
o $ m in transport benefits;
o $ m in city-shaping benefits; and
o $ m in wider economic benefits.
• Costs for the City to Woden Light Rail (Stage 2A and 2B), including a P50 contingency, amount to
$ m ($2019, real, PV at 7%), consisting of capital, operating and development costs.
• As a result, the full City to Woden (Stage 2A and 2B) Light Rail has a BCR of 1.0 and an NPV of
$ m.
• A separate CBA has not been conducted for the Commonwealth Park to Woden component of the alignment on the basis that it will form part of a future business case for Stage 2B. However, on the basis of the City to Woden and City to Commonwealth Park BCRs calculated above, it is likely a BCR for this section would exceed 1.0.
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• City-shaping; and
• Wider economic benefits.
These three categories align to the benefits identified in the Investment Logic Map (ILM). The figure below
illustrates the relationship between the Project objectives, the benefits identified in the ILM and the
economic benefits identified in the economic appraisal. This relationship − and the ‘unlocking’ of the
Project’s potential benefits − has been a critical consideration in the assessment and analysis of the Project
undertaken for the Business Case.
Figure 7-1: Relationship between Project objectives and benefits
Route alignment
Analysis has been performed for four different route alignment segments on the north-south public
transport spine as outlined in this section.
The indicative blended BCR derived by Major Projects Canberra encompasses the north-south public
transport spine from Gungahlin to Woden and the staged development from Gungahlin to Commonwealth
Park. These have not been developed on the basis of a single Cost Benefit Analysis, but are a ‘blend’ of
results from the Stage 1 Business Case cost-benefit analysis (escalated to 2019) and the Stage 2A and
As a consequence, differing assumptions underpin the indicative ‘blended’ BCRs in respect of light rail
between Gungahlin and Woden and Gungahlin to Commonwealth Park. They are presented, however, to
provide an indication of the economic benefit and cost outcomes across the entirety of the Gungahlin to
Woden corridor.
7.1.1.1 Gungahlin to Woden
This analysis utilises:
• Gungahlin to the City benefits as per the Light Rail Stage 1 Business Case;
• Actual Gungahlin to the City project costs as presented in the Project Delivery Report; and
• Stage 2A and Stage 2B analysis as set out below.
7.1.1.2 Gungahlin to Commonwealth Park
This analysis utilises:
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• Gungahlin to the City benefits as per the Light Rail Stage 1 Business Case;
• Actual Gungahlin to the City project costs as presented in the Project Delivery Report; and
• Stage 2A analysis as set out below.
7.1.1.3 City to Commonwealth Park (Stage 2A)
The proposed light rail route commences in the City’s central business district from the City to Gungahlin
Light Rail terminus at Alinga Street and travels south along Northbourne Avenue, around the west side of
London Circuit and onto Commonwealth Avenue. The Commonwealth Park terminus stop is located on
Commonwealth Avenue, north of the intersection between Commonwealth Avenue and Albert Street.
7.1.1.4 City to Woden (Stage 2A and 2B)
The proposed light rail route alignment commences in the City from the existing terminus of the City to
Gungahlin Light Rail service and travels south along Northbourne Avenue before crossing Lake Burley
Griffin via Commonwealth Avenue Bridge. From the Bridge it travels through the Parliamentary Triangle via
State Circle (East) and continues to the Woden Town Centre via Adelaide Avenue, terminating at Callam
Street.
Base Case
The base case represents a ‘business as usual’ scenario under which each respective light rail option is not
constructed. The base case includes the continuation of existing programmes, such as proposed upgrades
to the road network and proposed city shaping developments, such as those within the Acton Waterfront
precinct, which are assumed to occur from 2024.
All options and sensitivities are presented relative to this base case. Key assumptions for the base case,
including those related to the Acton Waterfront development, are outlined in Table 7-1.
Table 7-1: Base case overview
Assumption Description
General
Transport
network
• Planned road upgrades across the Territory including a series of road upgrades on and
around Parkes Way
• London Circuit/Commonwealth Avenue Intersection assumed to be grade separated103
• Several park and rides implemented in future years
Public
transport
• City to Gungahlin Light Rail in operation
• Stage 2A route economic appraisal: Canberra’s 2019 bus network, with future updates in
line with greenfield developments
• City to Woden Light Rail (Stage 2A and 2B) economic appraisal: Bus network as outlined
in the Public Transport Service Plan, with future updates in line with greenfield developments
• The difference between the two bus networks highlighted above include changes to the R7
and R10 rapid bus routes, the addition of peak express routes 180, 181 and 182 between
Tuggeranong and the City, and the removal of other peak express services.
• Public transport fares remain constant at $2.67 in real terms
103 Approval for works to raise London Circuit to meet Commonwealth Avenue at a newly formed signalised intersection is being sought as part of a separate Business Case. In this economic analysis, light rail will travel up a ramp between London Circuit and Commonwealth Avenue. However, under an at-grade configuration, light rail would traverse along the median through the intersection, turning right onto Commonwealth Avenue.
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Assumption Description
Land use
Land use in the base case is consistent with the Canberra Strategic Transport Model (CSTM), with
the development of the Acton Waterfront precinct occurring between 2025 and 2030 as per land
use strategies, which is detailed further below.
Parking Parking costs are assumed to increase throughout the Territory at varying rates depending on the
location.
Fuel The fuel price is assumed to be 140c per litre in 2011 and grow every year
Land
development
costs
Land development costs include professional fees, site preparation costs, infrastructure works,
statutory fees, marketing costs, legal fees, council rates, sales commission and a valuation fee.
City to Commonwealth Park (Stage 2A) Project case
The Project case includes the construction and operation of Stage 2A and the acceleration of the Acton
Waterfront development. The assumptions underlying the Project case are shown in Table 7-2.
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Table 7-2: Project case overview
Assumption Description
Transport network
Everything included in the base case with road modifications necessary to accommodate
the Stage 2A route including:
• Removal of the slip lane from London Circuit (westbound) to Commonwealth Avenue
(southbound)
• A new bridge is built to accommodate light rail travelling over Parkes Way
• The London Circuit/Commonwealth Avenue Intersection is assumed to be grade
separated104
Note: these assumptions are made for economic modelling purposes only and are subject
to separate consideration by Cabinet.
Public transport
• City to Commonwealth Park Light Rail is constructed
• Base case bus network. A decision on how the bus network will integrate with the
Project once operations commence will be taken in due course
Note: these assumptions are made for economic modelling purposes only and are subject
to separate consideration by Cabinet.
Land use
Land use in the Project case is consistent with the base case, except for the development
of the Acton Waterfront precinct which is assumed to be accelerated i.e. construction is
brought forward and have a more compressed period, as detailed in Section 7.1.3.1.
Parking Assumptions are as per base case
Fuel Assumptions are as per base case
7.1.3.1 Land use assumptions
The ACT Government has stated that, although the Acton Waterfront development may proceed
irrespective of the Project, construction of the Stage 2A light rail will accelerate the completion of
commercial and residential developments in the precinct. As such, this CBA captures the incremental
benefits that flow from the accelerated development of the Acton Waterfront.
Figure 7-2 compares the development profile assumed in the base case (which aligns with City Renewal
Authority plans and the Territory land release program) with the accelerated development profile assumed
in the Project case.
104 Approval for works to raise London Circuit to meet Commonwealth Avenue at a newly formed signalised intersection is being sought as part of a separate Business Case. In this economic analysis, light rail will travel up a ramp between London Circuit and Commonwealth Avenue. However, under an at-grade configuration, light rail would traverse along the median through the intersection, turning right onto Commonwealth Avenue.
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Figure 7-2: Cumulative GFA (residential and commercial) released at the Acton Waterfront in the project and base cases
A change to any assumptions made for either the base or Project case would have a material impact on the
economic appraisal and the results presented in this Chapter.
City to Woden (Stage 2A and 2B) project case
The project case includes construction and operation of the City to Woden (Stage 2A and 2B) Light Rail.
The assumptions underlying the project case are shown in Table 7-3.
Table 7-3: Project case overview
Assumption Description
Transport
network
As base plus road modifications necessary to accommodate the full route including:
• Removal of the slip lane from London Circuit (westbound) to Commonwealth Avenue
(southbound)
• Intersection upgrades on Parkes Way between Kings Avenue and Coranderrk Street
• A new infill bridge is built to accommodate light rail travelling over Lake Burley Griffin,
noting that further consultation with the NCA will be required on the crossing
• The London Circuit/Commonwealth Avenue Intersection is assumed to be grade
separated105
Note: these assumptions are made for economic modelling purposes only and are subject to
separate consideration by Cabinet.
105 Approval for works to raise London Circuit to meet Commonwealth Avenue at a newly formed signalised intersection is being sought as part of a separate Business Case. In this economic analysis, light rail will travel up a ramp between London Circuit and Commonwealth Avenue. However, under an at-grade configuration, light rail would travel through the intersection, turning right onto Commonwealth Avenue.
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Assumption Description
Public transport
Base case bus network with adaptions to accommodate light rail. These changes to the bus
network have been adopted for the purposes of transport modelling only. A decision on how
the bus network will integrate with the full route once operations commence will be taken in
due course. Bus changes include:
• R4 altered to operate between Lanyon and Woden via Greenway as a local service
• R5 altered to terminate at Russell
• Routes 170 and 171 were extended from Erindale to Woden, operating between Calwell
and Woden as a rapid service
• Other parallel bus-light rail services have been removed from the network to be
redeployed as feeder buses to the full route, such as buses from surrounding suburbs to
Woden
• Other associated bus network assumptions have also been made
Note: these assumptions are made for economic modelling purposes only and are subject to
separate consideration by Cabinet.
Land use
• The Project case assumes that the light rail investment will unlock accelerated growth of
population and employment in the light rail corridor at the expense of growth elsewhere
in the ACT
• The Acton Waterfront development is assumed to be accelerated; i.e. constructed is
brought forward with a more compressed construction period
• Land use is further outlined below
Parking Assumptions are as per base case
Fuel Assumptions are as per base case
7.1.4.1 Land use assumptions
An assessment of potential land use changes that will accompany the development of the full route has
been developed, resulting in changed employment and population forecasts across the Territory due to an
intensification of activity in the City to Woden Light Rail’s area of influence.106 It should be noted that the
Territory-wide population and employment forecast and demographics remain constant between the base
and project cases; only the distribution of future growth is assumed to change reflecting the City to Woden
Light Rail’s city-shaping potential.
The area of influence is split into seven precincts as shown in Figure 7-3. These are described in further
detail in Section 5.2. Notable developments in the Project case include the Acton Waterfront, North Curtin
and a more compact and efficient urban form in Woden.
106 The area of influence for the Project was determined using spatial analysis of the route alignment. The area of influence was initially determined using a linear catchment of 1,200m either side of the route alignment in activity centres and 800m in areas outside of activity centres. To refine the area of influence local conditions were considered – constraining factors such as land uses that were unlikely to change (for example, conservation areas) resulted in a contraction of the area of influence, whereas major employment zones or existing active travel infrastructure could expand the area of influence.
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Figure 7-3: Route alignment and precincts
Table 7-4 below shows population and employment in the urban renewal precincts in the business as usual
scenario in the base case and in the full route land use scenario in the project case.
Table 7-4: Precinct demographic changes
Precinct
Base case – BAU Project case – City to Woden
Population Employment Population Employment
2046 2046 2046 2046
1 12,049 25,211 23,256 31,265
2 2,414 1,910 4,977 2,798
3 2,249 5,666 7,181 9,033
4 4,777 2,088 6,036 3,124
5 10,562 24,613 13,393 28,354
6 16 7,238 13 8,641
7 40,428 83,832 46,353 81,571
Total 72,495 150,558 101,209 164,786
7
6
5
4
3
2
1
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Limitations
When interpreting the results presented in this Chapter, there are several limitations that should be kept in
mind.
Firstly, while a CBA attempts to encompass all costs and benefits of a project to society, there are both
elements that cannot be quantified/monetised as well as wider Project objectives that may not be well
represented within the monetised benefits and costs. For example, improvement in connectivity and urban
fabric are difficult to quantify in a CBA, but do provide a social benefit to the Canberra community.
Noting this, a BCR greater than 1 is not a guarantee of project success. Similarly, a BCR less than 1 does
not necessarily mean the project should not go ahead. Consideration should be paid to these potential
costs and benefits that have not been captured, as well as the project’s strategic fit with broader Territory
strategies and policies.
Light rail has specifications that make it a more attractive and convenient form of public transport. While
some of these benefits are captured in the CBA (e.g. as light rail amenity benefits), this may not capture all
impacts, such as:
• Relative to bus travel, light rail can provide a significant improvement to the mobility and access to
opportunities for disadvantaged groups, including easy access to stops and vehicles for the mobility
impaired, the elderly and for families, in a network that is easy to use and understand;
• Light rail tends to have lower physical barriers than other public transport options and requires fewer
level changes;
• Light rail can assist in enhancing the reputation of Canberra as a desirable city in which to live, visit
and invest;
• Given appropriate stop locations, light rail can also offer better quality access to community facilities
and shopping opportunities, as well as improved personal safety relative to bus travel; and
• Light rail comfort is high when compared to other public transportation options.
Finally, there are several benefits derived by potential future projects that are dependent on both the Stage
2A and City to Woden (Stage 2A and 2B) routes (see Section 7.1.6). For example, future light rail
extensions further south to Mawson or Tuggeranong, or east to Fyshwick or Kingston will have a lower
capital expenditure due to the sunk costs in the constructed route. Additionally, the Project will support
complementary land development projects, such as the urban renewal of the Acton Waterfront and City
Hill.
In addition to the benefits that may not be captured, the following limitations should also be considered
when interpreting a Project’s CBA:
• The economic appraisal assumes that the London Circuit/Commonwealth Avenue Intersection is
grade separated. However, other sections of this Business Case assume that London Circuit is
raised to meet Commonwealth Avenue at a newly formed signalised intersection, with approval for
those works being sought as part of a separate Business Case. Under this road configuration, light
rail will traverse the intersection, turning right onto Commonwealth Avenue. While this is not
expected to have a material impact on the results, the economic appraisal does not directly align to
the Project scope detailed in Chapter 5.0;
• As described in Section 7.4, the estimate of economic resource costs used for the CBA are not
directly comparable to the costs presented in Chapter 6.0. This is caused by the following factors:
o Economic costs are presented in real present value (discounted at 7%) terms, whereas costs in
the Chapter 6.0 are presented in real and nominal terms; and
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o Economic costs are presented with P50 contingency. The financial appraisal presents costs
with P75 contingency.
• The cost component of the CBA represents an estimate of the economic resource costs. Ultimately
the Project outturn cost will be determined in large part by the private sector during the procurement
process; and the occurrence (or otherwise) and severity of risk events during the life of the Project;
• The benefits component of the CBA may be influenced, both positively and negatively, by actions
taken by the ACT Government subsequent to this Business Case;
• The benefits described in this Chapter are estimated using industry accepted methodologies, but
they do not always reflect all impacts that one may perceive in practice. For example, a value that is
attached to time travel savings from light rail may end up being reflected in higher property values
along the rail corridor, as people value living near the light rail network. To avoid double counting of
benefits, such impacts are only counted as a benefit once (in the above example they are captured
as a travel time saving); and
• A CBA should not be regarded as the only tool which may appropriately be used by government in
making an investment decision. It is appropriate for government to also have regard to a broad
range of other factors, such as stakeholders’ views, planning considerations and the Territory’s
overarching vision for Canberra.
It should be noted that values presented in this document have been subject to rounding. This can cause
the appearance of arithmetic errors.
Future projects
The Stage 2A and Stage 2B route will enable future extensions of light rail from the north-south spine,
which could deliver further economic benefits to Canberra. The ACT Government acknowledges that the
City to Woden Stage of Canberra’s Light Rail Network is a difficult stage due to constructability and
planning challenges along the route but recognises the importance of the stage as a critical element of the
network.
Building the Stage 2A, and then Stage 2B, route now can therefore enable further benefits to be unlocked
in the future. These benefits, which have not been included in this economic appraisal, can include:
• The reduction in the need to interchange between modes and lines;
• Better interchange between modes; and
• The potential to connect to new locations.
7.2 Methodology
Overview of method
The assessment of the economic merits of Stage 2A and City to Woden Light Rail (Stage 2A and 2B),
including the consequential urban development, has been conducted using a CBA. The approach is
consistent with the CBA used for the City to Gungahlin Light Rail Project, with appropriate modifications to
reflect updated industry appraisal guidelines and parameters.
As noted in other sections of this Chapter, a different approach has been adopted for the development of
the indicative blended BCRs.
A high-level approach to the Stage 2A and City to Woden Light Rail (Stage 2A and 2B) CBA is shown in
Figure 7-4.
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Figure 7-4: CBA methodology overview
There are three overarching benefit categories captured in the analysis:
• Transport benefits – benefits delivered due to the improvement of the transport system. It includes
direct journey experience benefits such as travel time savings (to both public transport and highway
users), reliability improvements and light rail amenity improvements. In addition, it captures external
benefits such as reduced congestion and health benefits, and finally benefits accruing to
government such as an increase in public transport fare revenue and bus operating cost savings.
• City-shaping benefits – benefits resulting from the land use change generated by the development
of the respective Projects, and acceleration of development at Acton Waterfront as detailed in
Section 7.1.3.1. The benefits include land value uplift resulting from an increase in densification and
infrastructure cost savings resulting from economies of scale in infrastructure provision.
• Wider economic benefits (WEBs) – productivity benefits that result from improved business-
business and business-workforce connectivity, consisting of transport and land use agglomeration
benefits.
All benefits captured under each category are shown in below. The results for all benefits and costs are
discussed further in this Chapter.
Economic guidelines
This economic appraisal has been conducted in line with current guidelines, including the Australian
Transport Assessment and Planning (ATAP 2018) and TfNSW Principles and Guidelines for Economic
Appraisal of Transport Investment and Initiatives (released in March 2013, with updated parameters in
Appendix 4 in March 2018). These guidelines, in addition to the National Guidelines for Transport System
Management in Australia, provide the framework for this CBA and the relevant parameter values.
Economic assumptions
The economic analysis is underpinned by several parameters and assumptions. Table 7-5 identifies the
key CBA parameters. Further detail on methodology and detailed parameters and assumptions is provided
in the Assumptions Book at the end of this document.
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Table 7-5: Key CBA assumptions
Assumption Detail
Appraisal horizon
City to Commonwealth Park (Stage 2A): The economic appraisal period includes the period
of implementation (FY2022 – FY2024), and 30 years of operation. A residual value benefit is
accounted for in the last year of operations
City to Woden (Stage 2A and 2B): The economic appraisal period includes:
• The period of implementation for Stage 2A (FY2022 – FY2024), and 30 years of
operation for the City to Commonwealth Park section
• The period of implementation for Stage 2B (FY2022 – FY2025), and 30 years of
operation for the Commonwealth Park to Woden section
Constant prices All costs and benefits are estimated in constant FY2019 prices
Discount rate
All benefits and costs are discounted to their present value as at the start of the appraisal
period. The analysis uses a 7% real discount rate as prescribed in ATAP and TfNSW
evaluation guidelines and The Capital Framework. Sensitivity tests have been undertaken
based on a 4% and 10% rate
Base case Includes approved and planned road improvements and current bus network
Source of inputs
The table below shows the various sources for the cost and benefit inputs used in the economic appraisal.
Table 7-6: Sources of inputs to the CBA
Benefit Input data Source
Cost
inputs
Project capital costs Cost estimator
Project operating costs Cost estimator
Development costs Commercial advisor
Benefit
inputs
Transport patronage and journey times in the base and Project
cases (in 2026, 2036 and 2046)
Transport modeller
Acton Waterfront land development timeline Major Projects Canberra / City
Renewal Authority
Land use Land use advisor
Economic transport model outputs Transport modeller
7.3 Transport model results
High-level results of the transport modelling undertaken by the ACT Government’s transport modeller are
presented for light rail, bus and car below.107
107 Results presented in this section represent first round benefits only – that is, they show the direct impact of construction of each Project on the transport network. Second round transport impacts caused by land use changes resulting from the construction of each Project are not shown but remain a significant aspect of the Stage 2A and City to Woden (Stage 2A and 2B) Light Rail.
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Light rail
The construction of the Stage 2A and City to Woden (Stage 2A and 2B) Light Rail directly increases the
number of service and passenger kilometres on the light rail network in Canberra from the services
provided by the City to Gungahlin corridor in the base case.
Light rail service kilometres are expected to directly increase by 14% with the introduction of Stage 2A and
double with the introduction of City to Woden Light Rail (Stage 2A and 2B). Light rail passenger kilometres
are expected to directly increase over and above the relative increase in service kilometres.
Figure 7-5 shows the changes in daily light rail passenger kilometres between the base and Project cases,
with a significant direct increase in patronage seen in each of the model years.
Figure 7-5: Light rail passenger kilometres (daily, 2026 and 2046)
Bus
Figure 7-6 shows both the change in bus service and passenger kilometres between the base and project
cases for the Stage 2A and City to Woden (Stage 2A and 2B) Light Rail. Figure 7-7 outlines the change in
overall public transport service and passenger kilometres between the base and Project case.
Daily bus passenger kilometres are anticipated to decline slightly in the Stage 2A Project case when
compared to the base case, while overall public transport passenger kilometres remain fairly constant over
the appraisal period. Bus service kilometres, however, are also expected to decrease slightly for the City to
Woden Light Rail (Stage 2A and Stage 2B) project case.
For the City to Woden (Stage 2A and 2B) Light Rail, daily bus passenger kilometres decline with the
introduction of light rail, but the overall impact on public transport passenger kilometres is small, with the
decrease in bus travel offset by an increase in light rail passenger kilometres.
It should be noted that a decision on how the bus network will integrate with Stage 2A and City to Woden
(Stage 2A and 2B) Light Rail once operations commence will appropriately be taken closer to the date of
operations commencement (see Section 5.6.2).
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Figure 7-6: Network wide bus passenger kilometres (daily, 2026 and 2046)
Figure 7-7: Network wide public transport passenger kilometres (daily, 2026 and 2046)
Highway
Figure 7-8 shows the change in car network kilometres and car hours between the base and project case
for Stage 2A and City to Woden (Stage 2A and 2B) Light Rail. Under both Stage 2A and City to Woden
(Stage 2A and 2B) Light Rail, no significant change is expected in the first round in car network kilometres
and car hours.
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Figure 7-8: Network wide car kilometres and hours (daily, 2026 and 2046)
7.4 Project costs
Project costs have been provided by the cost estimator (with development costs sourced from the
commercial advisor). Costs presented as part of the financial analysis have been adjusted for use in the
economic appraisal for Stage 2A and City to Woden (Stage 2A and 2B) Light Rail CBA. The cost figures
used in the economic appraisal are:
• In real terms – $FY2019 (with real escalation);
• Subject to P50 contingencies; and
• Operating costs are over a 30-year appraisal period as opposed to the shorter financial appraisal
period.
Capital costs
Capital costs for the Stage 2A route are assumed to be ($2019108, real, P50).
Capital costs for the City to Woden (Stage 2A and 2B) Light Rail route are assumed to be ($2019,
real, P50).
Capital costs for the Gungahlin to City component of the network are assumed to be actual project costs
incurred by the Territory, as presented in the Project Delivery Report and escalated to $2019 for like-for like
utilisation in the blended BCR analysis.
Operating costs
Operating and maintenance costs captured include those from operating the light rail routes, as well as
required vehicle and infrastructure maintenance works. It does not include costs associated with operating
the City to Gungahlin route. Any additional or avoided cost of services (such as bus routes that are no
longer required) have been included as a benefit.
Operating and maintenance costs are expected to amount to over the 30-year appraisal period for
the Stage 2A route ($2019 real, P50); and to over the 30-year appraisal period for the City to
Woden (Stage 2A and 2B) Light Rail ($2019 real, P50). This is inclusive of life-cycle costs (renewals)
required to maintain a sufficient level of operational performance.
108 All economic costs include real escalation to account for real changes in costs over time. In other words, the costs include escalated costs with inflation stripped out. Escalation over time that are caused by other factors (for example, technical changes, supply/demand and other effects) are accounted for when costs are escalated but not inflated.
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Development costs
Development costs associated with the Acton Waterfront development total ($2019, real, discounted
at 7%). These are costs associated with preparing Acton Waterfront for development, such as road and
services connections. It represents the additional upfront cost of accelerating the development and
construction of the Acton Waterfront (i.e. they are incremental to the development costs incurred in the
base case).
Summary of Project costs
The table below shows a breakdown of the total cost for each option for economic purposes only.
Table 7-7: Present value Project cost summary ($2019m, real, PV at 7%)
Cost Item City to
Commonwealth Park
City to Woden
Capital cost
Operation and maintenance costs
Development costs
Total Project cost
7.5 Project benefits
This section explores the benefits captured by the CBA. Figure 7-9 shows the benefit and cost streams
captured by the CBA.
Figure 7-9: Benefit and cost streams
Transport benefits
The transport benefits discussed in this section arise from both the change in transport provision and
change in land use.
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Stage 2A and City to Woden (Stage 2A and 2B) Light Rail will have the following direct benefits on users of
the transport system.
• Travel time savings – reduction of travel time by light rail, bus and road;
• Reliability – reduction in road travel time variability;
• Vehicle operating costs – reduction in fuel consumption and other vehicle costs;
• Health benefits – increases in walking and cycling leading to improved health outcomes; and
• Light Rail amenity benefits – perceived amenity benefits from travel on light rail versus by bus.
In addition, the wider Canberra community will also benefit from Stage 2A and City to Woden (Stage 2A
and 2B) Light Rail through the following external benefits:
• Externality impacts – reduction in negative externalities associated with car and bus travel;
• Road accidents – reduction in accident rates and hence costs, due to modal shifts;
• Increased public transport revenue – revenue from new public transport users;
• Bus operation savings – change in bus operating costs due to changes in bus service kilometres;
and
• Residual asset value – remaining asset value at the end of the 30-year appraisal period.
7.5.1.1 Transport user benefits
A description of the transport user benefits captured by the CBA are outlined below.
Travel time savings – Public transport
Perceived travel time savings for public transport users, including time to access transport, wait time, in-
vehicle time and transfer time, because of improved public transport services. The reduced travel time
costs include costs to businesses of the time their employees and vehicles spend on travel, and costs to
consumers of personal time spent on travel.
Travel time savings – Highway
Perceived travel time savings for road users based on changes to in-vehicle time, because of reduced
congestion and improved on-road infrastructure. The reduced travel time costs include costs to businesses
of the time their employees and vehicles spend on travel, and costs to consumers of personal time spent
on travel.
Reliability – Highway
Perceived travel time savings from reductions in travel time variability on road travel because of reduced
congestion and improved on-road infrastructure.
Vehicle operating costs (VOC)
A change in the vehicle speeds on the network will affect vehicle operating costs, as fuel consumption and
other variable vehicle costs are higher in congested than in free-flowing networks. Total vehicle operating
costs comprise basic variable running costs of the vehicle (depreciation, fuel, repairs and maintenance) in
resource cost terms (i.e. excluding taxes and duties).
Light rail amenity benefit
Public transport users place value on other journey characteristics than what is counted by time and cost
savings. These include elements that are particularly relevant to light rail (e.g. as compared to bus), such
as network legibility, reliability, comfort, permanency and physical accessibility. These ‘amenity’ benefits
are captured as a ‘discount’ to the perceived incremental travel time on light rail.
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7.5.1.2 Transport externality benefits
A description of the transport externality benefits captured by the CBA are outlined below.
Externality impacts
Since different transport modes result in the production of different externality costs, such as air pollution,
noise, urban separation and greenhouse gas emissions, changes in travel patterns will cause changes in
network-wide externalities. Externality impacts have been measured using changes in vehicle kilometres
travelled, together with evidence on damage cost per vehicle kilometre travelled.
Accident costs and health
The human and physical costs of accidents on the road network have been estimated for road vehicles (car
and bus) as an average cost saving per reduction in vehicle km travelled. For road users this is applied as
a cost per vehicle kilometre by road type and for bus as an average cost per service kilometre.
Stage 2A and City to Woden (Stage 2A and 2B) Light Rail have the potential to influence health outcomes
for people who change their travel behaviour to more active forms (walking and cycling) because of light
rail. This change in active transport movements is likely to be achieved through an increase in the number
of people living in accessible locations (i.e. being able to walk to more destinations) and to access/egress
from public transport modes. Greater levels of walking and cycling in turn can influence and individual’s
health outcomes and the wider cost burden this outcome places on the health system.
Health benefits can also be generated due to the reliability and preference of the light rail over driving. This
will lead more people to walk or cycle to the nearest light rail stop as opposed to driving.
Public transport fare revenue
Additional fare revenue across the public transport network because of Stage 2A and City to Woden (Stage
2A and 2B) Light Rail being implemented. Public transport fares are transfers (as opposed to true costs or
savings). However, since the fares that new public transport users pay are captured as negative user
benefits, the incremental revenues from fares received by the operator must be counted as an ‘offsetting’
benefit.
Avoided bus operating costs
The introduction of the proposed light rail system will result in the reduction of costs for the provision of
alternative public transport services, resulting in a reduction in bus kilometres travelled. Such savings have
been captured using modelled changes in bus vehicle kilometres travelled and per kilometre values on
operating and maintenance costs. Assumptions regarding bus operating costs are contained in the
Appendix. Note that this economic analysis has not considered savings from avoided spend on alternative
(not yet approved) transport infrastructure projects.
Residual value
Additional value that Stage 2A and City to Woden (Stage 2A and 2B) Light Rail will generate beyond the
30-year operational period in the analysis. Some components of the investment in the projects have
significant life remaining at the end of the appraisal period, meaning that the asset still has the capacity to
accrue benefits. Residual values are a way of capturing this remaining capacity.
7.5.1.3 Summary of transport benefits
The first and second round transport benefits, i.e. the benefits arising from each project including the land
use changes are shown in Table 7-8 for Stage 2A and City to Woden Light Rail (Stage 2A and 2B).
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Table 7-8: First and second round transport benefit summary ($2019m, real, PV at 7%)
The transport benefits above include both first and second round transport impacts. For the Stage 2A route,
second round transport benefits refer to those that accrue due to the accelerated development at the Acton
Waterfront, and represent the benefit of demographic changes that affect travel patterns and lead to
improved network efficiencies.
For City to Woden (Stage 2A and 2B) Light Rail, second round transport benefits are also generated by
land use changes along the light rail corridor, as described in Section 7.1.4.1.
City shaping benefits
In combination with supportive government policies, light rail has the potential to drive land use changes.
These will lead to additional benefits over and above those captured within transport benefits, both by
realising higher and better use of existing land, reducing the cost of providing public services and delivering
densification benefits such as agglomeration. Note that changes in the value of existing property stock are
not captured as benefits, as these are merely manifestations of gains captured elsewhere in this economic
assessment.
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The land use benefits captured in the City to Commonwealth Park (Stage 2A) economic appraisal relate to
the acceleration of the development timeline for the Acton Waterfront.
For the City to Woden (Stage 2A and 2B) Light Rail, city shaping benefits are also driven by land use
changes in the light rail corridor between the City and Woden as outlined in Section 7.1.4.1.
The land use benefits captured by the CBA are outlined below.
Land use benefits
A change in land use will generate a net economic benefit if the value of the new use is higher than the
value of current use, plus the cost of achieving the change. In an unfettered market, such benefits would be
exhausted by developers and land owners. However, property markets face many constraints, including
planning regulations and transactional taxes and levies. If the introduction of Stage 2A and City to Woden
(Stage 2A and 2B) Light Rail unlocks, enables or attracts additional development into the corridor, away
from other parts of ACT, the balance of these constraints may add up to a net benefit. These may consist
of:
• Highest and best use109 – where an increase in density is only permitted if a mass transport
solution like light rail is introduced, the increase in land value from the higher permitted density
can be attributed to the transport solution; and
• Transactional taxes – where a transport improvement attracts development into a corridor that
already has higher valued property, the balance of incremental transactional taxes in the
corridor and foregone taxes elsewhere will be positive. This should then be attributed as a
benefit to the transport improvement.
Accordingly, the benefit attributed to light rail from land use uplift, as well as the net incremental increase in
GST on residential sales and stamp duty paid, are captured as a benefit.
Light rail projects are city-shaping developments, providing a stable corridor for investment and higher
value land use. As a city-shaping initiative for Canberra, light rail is expected to support changes in
population and employment, stimulating urban renewal and economic diversification and helping to create
a more connected, compact and competitive Canberra.
Infrastructure cost savings
Future population growth will require the provision of additional public services and physical infrastructure
to ensure that existing service standards are maintained.
The future spatial location of population and jobs can impact the future government costs of providing
physical infrastructure such as roads, rail and other transport, water and sewerage, electricity, gas and
telecommunications. The cost to provide these services to “greenfield” (i.e. outer suburban or fringe
development) locations is typically much higher per dwelling than to already well serviced “brownfield” (i.e.
inner City) locations. Encouraging more of the future growth in population within built-up areas will generate
an infrastructure cost saving.
7.5.2.1 Summary of city shaping benefits
The city shaping impacts resulting from light rail are shown below.
Table 7-9: Land use benefit summary ($2019m, real, PV at 7%)
109 For example, mixed use medium and high-density apartments
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Wider Economic Benefits
The analysis of WEBs attempts to capture the productivity impacts of a project that accrue outside the
transport sector, including from the effects of improved connectivity, land development, and business
logistics improvement. The impacts result from both transport improvements and land use changes.
Agglomeration benefits are the result of business and commute travel time reduction which brings firms
closer to each other, to workers, to their suppliers and consumers, and facilitates the knowledge and
information exchanges. As WEBs are driven by accessibility, the improved connectivity delivered by the
Project and the land use densification along the corridor both support increased agglomeration benefits.
Table 7-10 below summarises the transport and city shaping wider economic benefits that result from each
Project.
Table 7-10: Wider economic benefit summary ($2019m, PV at 7%)
Summary Results and north-south corridor indicative blended BCR
The results presented throughout this section are summarised in Table 7-11 below. All results are
presented in $million, discounted at a rate of 7%.
Major Projects Canberra has, independently of its economic advisor, derived a blended indicative BCR,
inclusive of wider economic benefits, between Gungahlin and Woden and Gungahlin to Commonwealth
Park of 1.2. This blended analysis utilises:
• Gungahlin to the City benefits as per the Light Rail Stage 1 Business Case;
• Actual Gungahlin to the City project costs as presented in the Project Delivery Report, adjusted to
$2019; and
• Stage 2A and Stage 2B analysis as set out in this Chapter.
The approach used for the blended BCR has not been created using new analysis or under the same
process as the Stage 2A or City to Woden Light Rail BCRs. Consequently, underlying assumptions from
the City to Gungahlin BCR may not be relevant and not provide the same outcome when viewed on a City
to Woden basis.
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The City to Gungahlin results are based on assumptions, estimates, modelling and forecasts believed to be
reasonable at the time of the 2014 Business Case. They do not reflect any changes in scope, costs or
economic reality since then, and as such do not represent the realised costs and benefits from the project.
When considered in conjunction with the BCR for the City to Gungahlin (Stage 1), the benefits of light rail
across the north-south corridor between Gungahlin and Woden via the City, inclusive of wider economic
benefits, exceed the costs.
Results for the City to Gungahlin Project should be interpreted in conjunction with the assumptions and
limitations set out in the Business Case for that Project.
Table 7-11: Results summary ($2019m, real, PV at 7%)
Benefit Category
Gungahlin to
Woden
(Indicative
Blended)
Gungahlin to
Commonwealth
Park
(Indicative
Blended)
City to
Commonwealth
Park
City to Woden City to
Gungahlin110
Project benefits
Transport benefits 569
City shaping
benefits
534
Wider economic
benefits
278
Total Project
benefits
1,380
Project costs
Project capital
costs
748111
Operating costs 286
Development
costs1
-
Total Project
costs
1,035
Results
NPV (excluding
WEBs)
69
NPV (including
WEBs)
346
110 Results for the City to Gungahlin Project escalated to 2019$ at 7% 111 Adjusted to reflect the actual cost of the City to Gungahlin Light Rail as presented in the Project Delivery Report
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Benefit Category
Gungahlin to
Woden
(Indicative
Blended)
Gungahlin to
Commonwealth
Park
(Indicative
Blended)
City to
Commonwealth
Park
City to Woden City to
Gungahlin110
BCR (excluding
WEBs)
0.8 0.9 0.4 0.6 1.1
BCR (including
WEBs)
1.2 1.2 0.6 1.0 1.3
The Cost Benefit Analysis has produced BCRs for City to Woden Light Rail (Stage 2A and 2B) of 1.0 and
City to Commonwealth Park (Stage 2A) of 0.6 (including WEBs). A separate CBA has not been conducted
for the Commonwealth Park to Woden component of the alignment on the basis it will form part of a future
business case for Stage 2B.
However, on the basis of the City to Woden and City to Commonwealth Park BCRs calculated above, it is
likely a BCR for this section would exceed 1.0. Indicatively, deducting the costs and benefits of the City to
Commonwealth Park economic analysis from the costs and benefits of the City to Woden BCR would result
in a residual indicative BCR of around 1.2.
Sensitivity analysis
The following table shows the results of sensitivity analysis that tests the robustness of the appraisal results
to changes in key assumptions and results.
Table 7-12: Sensitivities ($2019m, PV at 7%)
Benefit Category
City to Woden
NPV BCR
Economic Results
Economic results 1.0
Sensitivities – Discount rate
4% Discount rate 1.5
10% Discount rate 0.8
Sensitivities – Benefits
Benefits + 20% 1.2
Benefits - 20% 0.8
Sensitivities – Costs
Costs + 20% 0.9
Costs – 20% 1.3
The sensitivities that have the largest impact on the economic results are a change in the discount rate to
4%, an increase in benefits by 20% and a decrease in costs by 20%.
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8.0 Delivery model analysis
8.1 Background and approach
The methodology employed to develop the delivery model for the Project has taken into account the
following considerations:
• The requirements of The Capital Framework with reference to Infrastructure Australia Guidelines;
• The interface challenges that arise due to the Project being an augmentation of the existing light rail
network; and
• The contractual relationship between the ACT Government and Canberra Metro.
While the existence of an incumbent increases the complexity of the delivery model selection process, the
same fundamental approach has been applied to the assessment:
• Assessing on a ‘best for Project’ basis with no preconceived bias in favour of one model over another;
• Undertaking a bottom up analysis based on the needs of the Project; and
• Being cognisant of the nature of the inherent Project risks.
A consultative and iterative process has been adopted to develop the delivery model, including workshops
and discussions with relevant ACT Government stakeholders and advisors, such as:
• Major Projects Canberra;
• Transport Canberra and City Services;
• ACT Treasury;
• Commercial advisors;
• Technical and operational advisors;
• Legal advisors; and
• Market soundings with industry participants, including Canberra Metro.
This was supported by a range of technical briefings, benchmarking analysis of similar procurements and
functioning light rail systems and risk assessments.
Key messages
• The recommended delivery model to be pursued in the first instance consists of two components:
o An ‘Early Contractor Involvement’ contract on a sole source basis with Canberra Metro in
connection with Stage 2A. This will cover the period between this Business Case and the
submission of a proposal for the main Stage 2A works by Canberra Metro. This ‘Early Contractor
Involvement’ approach will enable development of Stage 2A to continue while Canberra Metro
prepares its proposal. It will also establish a framework which will facilitate the achievement of a
value for money outcome
; and
o Procurement of a contract for the Project’s main works through a sole source negotiation with
Canberra Metro. This will, at a minimum, include an integrated package consisting of the design,
construction, operations and maintenance of the Project. The entry into a contract for the Stage 2A
main works will come at the conclusion of the Stage 2A ‘Early Contractor Involvement’ process.
•
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Important note
At the outset, it is important to note the following:
• Balanced assessment: no single delivery model option perfectly addresses all aspects of the Project.
The delivery model recommendation in this Chapter is based upon a balancing of the advantages and
disadvantages of potential delivery models for the Project;
• Differing opinions: some stakeholders and market participants may have differing opinions as to the
optimal delivery model to be utilised for the Project, and as to the numerous ways in which a particular
delivery model may be structured and implemented. This is particularly relevant as the Project will be
procured early in Canberra Metro’s operating period for City to Gungahlin Light Rail; and
• Maintaining the option to change delivery model: the delivery model recommended in this
Business Case is based on the Territory being able to meet its objectives for the Project and drive a
value for money outcome in a sole source procurement. Consequently, the recommended option is
supported by a secondary delivery model option that could be implemented later in the process if
necessary.
8.2 Delivery model assessment
General principles
Seven general principles – based on the requirements of The Capital Framework – have guided the ACT
Government’s assessment of potential delivery models. They are:
• Risk transfer and price certainty;
• Quality;
• Value for money;
• Time;
• Flexibility and control;
• Market capacity and interest; and
• Innovation.
The table below provides key Project considerations in relation to each of the aforementioned Capital
Framework principles. The principles listed above have been given levels of priority that assisted in
informing the evaluation of options.
Table 8-1: Evaluation criteria
Criteria Key issues Relative importance to Project
Risk transfer and price certainty
• Ensuring effective risk transfer and appropriate risk allocation
to the party best able to manage each risk
• Operational interface risk with the existing network, as well as
the planned further extension south to Woden
• Planning risks associated with NCA approvals that are
required in ‘Designated Areas’
• Interface risk between components/packages
• Importance of maintaining the existing City to Gungahlin
performance regime
Very high
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Criteria Key issues Relative importance to Project
Quality • Provides a service of a standard equal to or greater than the
existing network
• Maintaining the KPIs and service level arrangements
contained in the existing network’s performance regime
• Continuous north-south spine that provides a single-seat
journey option for customers between Gungahlin and
Commonwealth Park, and eventually to Woden
• The Project is fit for purpose, achieving urban amenity and
customer experience outcomes
Very high
Value for money • Achieving value for money in a potentially non-competitive
procurement process
• Certainty of construction costs and whole of life costs (future
maintenance and operational costs)
• Costs incurred by the Territory in undertaking the procurement
• Taking advantage of economies of scale with City to
Gungahlin Light Rail where appropriate
Very high
Time • Time to market – Parliamentary Agreement commitment to
progress light rail to Woden to the procurement stage and
contract signing in the current Parliamentary term
• Time to completion
High
Flexibility and control
• Not preclude the future expansion of the Project (both
contractually and physically), noting it is the initial stage of
extending light rail to Woden
• Allow for technology advances, noting the possibility of
requirement for wire-free running on sections of Stage 2A and
Stage 2B as a consequence of NCA or Commonwealth
Government requirements
• Management of operations as the network expands
Medium
Market capacity and interest
• Market capacity – extensive pipeline of large rail and civil
projects
• Market interest in the Project given the existing City to
Gungahlin Light Rail Project Agreement with the incumbent
and the need for integration between stages
Medium
Innovation • Create an incentive for an innovative solution to drive cost
efficiencies
• Requirement to incorporate existing network design and
systems may impact level of innovation on the Project
Medium
Data gathering
Significant data has been collated for the purposes of assessing delivery model alternatives. This includes:
• Project objectives;
• Project requirements (scope of works and services);
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• Project constraints;
• Project risk assessment;
• Project cost estimates;
• Benchmarking and case study review; and
• Other information as contained throughout this Business Case.
Key risks
Key risks are outlined in Table 8-2 below.
Table 8-2: Key Project risks
Risks
Procurement risks
Value for money • By undertaking a sole source procurement of the Project there is a heightened
risk that value for money through the procurement process cannot be achieved
and/or demonstrated.
Market capacity • The procurement and delivery of the Project is expected to be coincide with
significant levels of transport infrastructure construction activity on the east of
coast of Australia. Consequently, there is a significant risk that there will be
market capacity constraints impacting the budget, timing and potentially quality
outcomes of the Project.
Project risks
NCA approvals • The alignment runs through ‘Designated Areas’ and as such will require the
approval of the NCA.
• This process increases the risk of delays and additional costs if deadlines are
missed and/or additional unexpected conditions are imposed. This could
include requirements for wire-free running (see wire-free risk below).
Environmental and other approvals
• Risk that the Project does not receive all other approvals required for the
Market price risk • If relevant, interest rate risk – risk of higher interest rates when Project
finance is rolled over beyond first financing periods;
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Risks
• Foreign Exchange risk – LRV procurement and other imported components of
the Project will be subject to changes in foreign exchange rates; and
• General labour price risk – while being a systematic risk, it should be noted
that market capacity constraints on the east coast may drive up the cost of
construction labour during the Project.
Preliminary Packaging Assessment
Prior to shortlisting a set of potential delivery models for the Project, an initial assessment of the packaging
options available was undertaken taking into account the existing Project Agreement between the Territory
and Canberra Metro.
The initial packaging assessment outlined in the below table has bundled Project components into groups
based on an assessment of the Project objectives, risks and technical characteristics. The packages have
informed the delivery model assessment.
Table 8-3: Initial packaging assessment
Package Components Rationale
Operations and maintenance
Operations
Maintenance (Hard and Soft FM)
LRV maintenance
Streetscape, furniture and
landscaping maintenance
Structure allows for the provision of continuous end-to-
end operations between Gungahlin and Commonwealth
Park; supports integrated operations and maintenance
activities across both stages; reduces interface risk; and
may potentially allow for the requirements of the
existing performance regime to be extended to the
Project.
Alignment and civils
(D&C) Civil infrastructure
Streetscape, furniture and
landscaping
Utilities
Components of civil infrastructure, utilities and
streetscaping that have significant interface during
construction are packaged together to minimise
physical and timing interface risks and provide
opportunities to obtain delivery efficiencies.
Components of the D&C with complex interfaces with
the existing light rail network have been excluded from
this package and considered separately.
Should the raising of London Circuit at Commonwealth
Avenue project be approved by the ACT Government,
these works would likely form part of this package due
to their significant interface with light rail.
Systems infrastructure and depot works
Systems infrastructure
Minor depot works
Software components of systems infrastructure have a
high interface with the O&M provider and therefore
should be procured together. In addition, the systems
software utilised for the Project should be the same as
City to Gungahlin Light Rail to ensure consistency,
reduce systems interfaces that could create safety
issues and to avoid duplication of upfront costs.
Hardware components can generally be specified and
procured as part of the wider D&C package to avoid
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Package Components Rationale
construction interfaces; however high interface
hardware components could also be procured as part of
the O&M scope.
High level delivery model assessment
In light of the preliminary packaging analysis outlined in Section 8.2.4, a high level delivery model
assessment has been undertaken to establish a shortlist of delivery model options.
To establish the shortlist, three key structuring questions were answered to eliminate less preferred
delivery model options:
• Single or multiple operator network – would the Territory pursue a multiple operator network either
split between the existing light rail network and the Project or with multiple operators providing services
on the one alignment;
• The preferred O&M procurement approach – would the Territory consider pursuing a sole source
procurement with Canberra Metro for all or part of the O&M components of the Project; and
• The preferred D&C procurement approach – what Project components should be bundled into a
larger D&C package to be procured under one contract and should the D&C procurement be pursued
using a sole source or competitive tender.
8.2.5.1 Single or multiple operator north-south alignment
There are a number of possible structures under which either a single or multiple operator network could be implemented as outlined in Figure 8-1.
Figure 8-1: Operator options
The findings from the assessment of multiple north-south operator models include:
• A multi operator north-south alignment would likely miss the economies of scale presented by a growing
single operator network due to some duplication of infrastructure and operating costs, particularly in
light of the small scale of the extension (1.7 km);
• A multi operator north-south alignment does not eliminate the need for a sole source negotiation with
Canberra Metro and may increase the risk of an inferior performance regime for the Territory;
• A split multi operator north-south alignment – with an interchange at the Alinga Street Stop – is likely to
provide a lower quality customer experience due to the requirement for customers to change LRVs; and
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• The continuous service – without interchange – multi operator model may also have challenges
achieving consistent levels of service through the network with different staff and procedures in place, in
addition to the need to manage the interface requirements between operators.
Conversely, a single operator north-south alignment option would provide:
• A consistent, high quality, network-wide customer experience outcome for passengers;
• A 'one network / one system' approach that ensures fully integrated systems in operations, power
control, communications, CCTV and PIDs;
• Best use of economies of scale from the existing light rail network by making the most efficient use of
infrastructure, such as LRVs, depot and maintenance equipment, and support staff in customer service
and corporate/administrative personnel;
• Substantially reduced interface risk between City to Gungahlin Light Rail and the Project’s O&M
components; and
• The potential for a consistent performance regime for City to Gungahlin Light Rail and the Project.
Based on this analysis, the Territory’s preferred option is to pursue a single operator north-south alignment.
8.2.5.2 The preferred O&M procurement approach
As Figure 8-1 highlights, the single operator scenario can be achieved through:
• Engaging the existing operator, Canberra Metro, to operate the full alignment (sole source), with or
without the D&C also procured on a sole source basis;
• A concession buy-out (termination) of the City to Gungahlin Project Agreement and retendering of the
O&M as a separate or integrated package with other scope components of the Project, such as the
D&C. This option is proposed to involve the complete buyout of the City to Gungahlin Light Rail
contract which is then combined with the Project’s D&C and O&M to create a new PPP taken to market
as one package.
An assessment of the sole source approach versus the competitively tendered approach highlights the key
considerations outlined below.
Sole source O&M approach
• Canberra Metro should bring learnings from the existing light rail network that will improve the overall
offering;
• Leaves the existing D&C and O&M consortia intact, maintaining whole of life benefits and the intra
consortia defects and fit for purpose protections;
• Is likely to be the more expedient procurement approach; and
• Will be more challenging to achieve a value for money outcome when compared to a full competitive
tender process.
Competitive tender through a concession buy-out (termination) of City to Gungahlin Light Rail approach
• May not attract sufficient market interest due to the perception of Canberra Metro being unfairly
advantaged and the small scale of the Project;
• If sufficient market interest is achieved, then a competitive process should drive more robust pricing;
• The termination process may be expensive and extend the time required to undertake the
procurement; and
• Presents some timing issues as Canberra Metro will need to continue O&M activities while the
procurement is occurring. It may be challenging to drive Canberra Metro’s performance effectively
during this period.
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Both of these options have been included in the shortlisted selection with these key considerations taken
into account in the ratings in Table 8-6.
The options for procuring O&M services are influenced by other Project packages, including the interface
with (or sole sourcing of) the D&C works for the Project and other key package items such as systems
infrastructure. The relevant interface risks, value for money and timing considerations are considered in the
following sub-section.
8.2.5.3 The preferred D&C Procurement approach
Consideration has been given to the procurement of the D&C under a combined O&M (City to Gungahlin
Light Rail and the Project) approach as outlined in Section 8.2.5.2. The D&C procurement has been further
considered under the following scenarios:
1. D&C packaging structure: should the D&C be procured as a single integrated package with the O&M
(or O&M plus high interface D&C components) or separately; and if so
2. D&C procurement approach: should the integrated packages be procured with Canberra Metro
under a sole source arrangement.
D&C packaging structure
As highlighted in the City to Gungahlin Light rail procurement model, there is benefit to integrating the D&C
and O&M components – regardless of the contractor – due to the potential to:
• Minimise interface risks;
• Maximise value for money through economies of scale and efficiencies in design and overall customer
experience; and
• Enhance whole of life benefits through the O&M contractor being closely involved in the D&C
procurement.
These benefits are usually offset by the drawback of not being able to select the best in class contractors
for each component of works and the fact that it can put restrictions on the level of input the Territory can
have into the operations phase.
While these drawbacks need to be considered and managed, the benefits of this approach warrant the
further examination of this option in the shortlisted delivery model evaluation outlined in Table 8-6.
D&C procurement approach
Should D&C components be bundled with O&M activities, the D&C procurement could be achieved either
through:
• A concession buy-out of the existing light rail network and a full procurement of City to Gungahlin Light
Rail O&M and the Project’s D&C and O&M under a competitive process;
• A process whereby the D&C component is the subject of a competitive process run by the Canberra
Metro SPV; or
• Canberra Metro for combined City to Gungahlin Light Rail and the Project on a sole source basis.
Key considerations in this respect – either if D&C were bundled with O&M or if it were a standalone
procurement – are outlined below.
Risk
• Procuring both City to Gungahlin Light Rail and the Project with Canberra Metro under an integrated
procurement model would assist in reducing the interface risk between components, while also
improving whole of life outcomes; and
• Consideration should also be given to reducing the interface between the Project and the future
stages across the Lake to Woden. This could include some allowance in the Project design for future
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proofing for an extension to Woden and provision in the commercial framework to facilitate
procurement of those works on a value for money basis.
Value for money
• Canberra Metro may be able to bring economies of scale from their work on City to Gungahlin.
Specifically, there may be efficiencies in design, planning and mobilisation costs;
• A competitive procurement process that results in a different D&C provider may lead to increased
costs due to the interface between City to Gungahlin Light Rail and the Project’s D&C contractor in the
design and planning phases. This may result in different approaches to key components of the
construction, leading to inconsistent customer outcomes and operational inefficiencies;
• While an open market D&C process may yield a more competitive process, there is also a risk that a
failure to attract other bidders (given Canberra Metro’s incumbency and the length of the
augmentation) may result in higher pricing to the Territory. Additionally, a concession buy-out may be
expensive adding material costs to the overall procurement process;
• A D&C process run by the Canberra Metro SPV is unlikely to attract other Tier 1 constructors, both
due to the current state of the infrastructure delivery market and because of the ownership structure of
the Canberra Metro SPV;
• A Canberra Metro procurement may result in a streamlined contract management process as it will be
an established governance structure which may minimise Territory resourcing requirements; and
• Canberra Metro may be able to bring economies of scale and minimise interface risks for the future
extension of Commonwealth Park to Woden.
Time
• Canberra Metro’s knowledge of the light rail network and Territory planning requirements, may support
quicker delivery; and
• Sole sourcing through Canberra Metro may obviate the need for a full procurement process,
potentially saving time and assisting to minimise undue delays.
On balance, procuring the Project’s D&C on a sole source basis through Canberra Metro is likely to yield
some time and cost efficiencies and has the potential to reduce interface risks between City to Gungahlin
and any future stages to Woden.
Procurement of an integrated D&C and O&M package under a Canberra Metro and an open market
process have been shortlisted and further considered in the shortlisting analysis and scoring in Section
8.2.6.
Shortlisted delivery model options
The initial packaging assessment and high level delivery model analysis led to a shortlisted set of delivery
model options for evaluation against the criteria outlined in Table 8-1. These options are outlined below.
Table 8-4: Shortlisted delivery model options
Delivery Model Description
Option 1: Sole source procurement with
Canberra Metro for the Project’s D&C and
O&M as an integrated package
• Includes procurement of all major components of the Project’s
D&C
• Includes procurement of the Project’s O&M to be combined with
City to Gungahlin Light Rail for an end-to-end service for the
remainder of the 20 year operating period under the City to
Gungahlin Light Rail contract
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Delivery Model Description
• Private financing of the Project could be considered for this
option. A final determination on the applicability of private
finance to the deal could be considered in the initial negotiations
with Canberra Metro
Option 2: Concession buy-out – integrated
package for procurement of the City to
Gungahlin Light Rail O&M plus the Project’s
D&C and O&M under a PPP
• Includes a buy-out of City to Gungahlin Light Rail by the
Territory based on a termination for convenience scenario
• Includes procurement of all major components of the Project’s
D&C
• Includes procurement of the Project’s O&M combined with City
to Gungahlin Light Rail for end to end services for the remainder
of the City to Gungahlin Light Rail 20 year operating period
• Private financing of the Project may be considered for this
option. Private finance may be used to buy out City to
Gungahlin Light Rail debt
Option 3: a split O&M (sole source) and
D&C (competitive tender)
• Includes procurement of all major components of the Project’s
D&C in a single package through the open market
• Includes procurement of the Project’s O&M and high interface
D&C components, such systems software, to be combined with
City to Gungahlin Light Rail and procured with Canberra Metro
allowing for an end-to end-service for the remainder of the City
to Gungahlin Light Rail 20 year operating period
• Private financing of the D&C component of the Project are not
considered appropriate under this option. Private finance of the
City to Gungahlin project would remain in place
These shortlisted options were then taken forward for a qualitative evaluation against the criteria outlined in
Table 8-1. Table 8-6 outlines the result of that evaluation and the associated drivers for each rating.
The ratings system utilised for the evaluation is outlined in Table 8-5.
Table 8-5: Qualitative rating scale
Scale Description of scale
✓✓✓ Extremely effective in satisfying the requirements of the criterion
✓✓ Effective in satisfying the requirements of the criterion
✓ Just satisfies the requirements of the criterion
Ineffective in satisfying the requirements of the criterion
Extremely ineffective in satisfying the requirements of the criterion
The shortlisted options are diagrammatically presented below – with colours representing the different
packages – followed by an assessment of the delivery models against the evaluation criteria.
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Figure 8-2: Delivery model packaging options
The assessment of the shortlisted delivery models against the evaluation criteria is set out below:
Table 8-6: Qualitative evaluation of the shortlisted delivery models
Evaluation criteria
Relative importance
Option 1 Option 2 Option 3
Overall assessment
Ranking – 1
Option 1 is the preferred option on the basis of risk allocation, time to market and market capacity as
compared with Options 2 and 3
Ranking – 2
Option 2, while providing relatively more flexibility to the Territory and a degree of risk transfer, will include
termination costs and a lengthier procurement
process
Ranking – 3
Options 3 allows greater synergy with City to Gungahlin Light Rail than Option 2 but the
D&C is likely to be relatively less attractive
to the market and reduces the Territory’s
control over the process
Flexibility and control
Medium
✓✓ - Currently limited flexibility in the Project
Agreement but could seek to enhance this through the
inclusion of robust termination provisions
✓✓✓ - Ability to re-write the Project Agreement to increase flexibility for the
Territory through procurement and contract
negotiations
✓ - Currently limited flexibility in the Project Agreement but could seek to enhance this
through an augmentation framework
to increase future flexibility
Optimal risk transfer
Very High
✓✓✓ - Sole source will provide for a fully integrated package with risk transfer. The incumbent’s familiarity with City to Gungahlin Light Rail may also enhance risk
transfer for the Project
✓✓ - Single PPP structure to govern both stages and for interface risks between packages to be managed
intra-consortium
✓ - Risk is taken on the D&C through a
competitive process. Fitness for purpose risks
between Canberra Metro and the D&C
contractor likely to be significant and borne by
the Territory
Quality Very High
✓✓ - Option will provide continuity for the customer
through one head contractor as well as
tension between quality and cost
✓ - While a fully competitive process
provides a basis to select the best technical solution,
a termination event may impact on City to
Gungahlin Light Rail and the Project and the ability to meet timetables and
retain learnings
✓✓ - Potential for the Territory to retain the benefits of a single operator for City to
Gungahlin Light Rail and the Project provided that
the operator has sufficient input into the
D&C and into the resolution of interface
issues
Value for money
Very High ✓ - Procurement process
will not be competitive; ✓ - Competitive
procurement process ✓ - Competitive
procurement (and
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Evaluation criteria
Relative importance
Option 1 Option 2 Option 3
however, there is potential for reduced procurement costs, economies of scale
and reduced cost pressures for interface risks
provides basis for a better price noting that
termination costs and the procurement process
requirements will result in additional costs
associated price competition) limited to
the D&C package. Additional interface risks will need to be factored
into the O&M price
Time High
✓✓ - Procurement process has the potential to be
quicker than a competitive tender (if successful)
✓ - A concession buyout followed by a PPP would
be the most time intensive option and could therefore impact on the timeliness of
the Project
✓✓ - Potentially advantageous noting that sole source may
take time to draft
Market capacity and interest
Medium
✓✓✓ - Direct negotiation with Canberra Metro for the Project allows the Territory to secure a contractor for
all aspects of the procurement
✓✓ - Current market capacity issues on the
east coast exist that may impact interest on the D&C but the large size and more open (without the incumbent) field may
be attractive to the market
✓ - Current market capacity issues on the east coast may impact interest for the D&C,
while the interface risk between the D&C and
O&M may also dampen market interest.
Innovation Medium
✓ - Continuity of design and service provision
should counteract the lack of substantive competition from the market under a
sole source approach
✓✓ - A competitive PPP could encourage
innovative solutions however there is a risk
that service continuity is compromised
✓ - Competition for D&C could encourage
innovative solutions however there is a risk
that service continuity is compromised
While the final structure (including any private finance and commercial arrangements with the City to
Gungahlin package of works) will be decided and confirmed following consideration of this Business Case,
the Territory’s preferred approach is Option 1 with procurement of the D&C and O&M components for the
Project with Canberra Metro.
Consideration of delivery model under sole source
The following section outlines some key issues that have been identified and will have an impact on the
Project’s procurement. These issues will be considered post this Business Case and will inform the
preferred delivery model, commercial structure and financing arrangements (if relevant) to be pursued with
Canberra Metro under the sole source model.
8.2.7.1 Planning issues
While the route for Stage 2A does not enter the Parliamentary Zone and therefore is not subject to the
same breadth of planning processes as Stage 2B to Woden, there remains substantial planning risks that
must be negotiated before contracting with Canberra Metro.
The following is an outline of the planning risks associated with the route that may drive selection of a
specified delivery model:
• The Project travels through ‘Designated Land’ and as such it requires an NCA Works Approval. As the
City to Gungahlin project was subject to the same planning approval regime, Canberra Metro and the
Territory have a good understanding of the requirements which provides greater certainty around
timing and the scope of effort required. However, there remains uncertainty about the NCA’s ultimate
requirements until Works Approval is granted. There is a risk that the NCA may require more
extensive designs than anticipated for Works Approval which could delay, add cost and increase
uncertainty for the Project. The ACT Government will seek to determine the NCA’s requirements
before entering into agreements with Canberra Metro.
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• The raising of London Circuit at Commonwealth Avenue project (if approved) presents planning issues
for the Project:
1. Should the London Circuit project be approved, it is anticipated that it may delay the final
design and construction timeline of the Project as the projects have a direct physical interface
and therefore construction requires sequencing. This Business Case assumes London Circuit is
raised (although approval is sought as part of a separate Business Case);
2. The complexity of the Project’s design could increase; and
3. The NCA has an interest in the outcomes of the London Circuit project as it interacts with their
long term plans for the area and therefore may add conditions to Project approvals accordingly.
The risk associated with planning approvals for the Project is significant. Based on current market
circumstances and market sounding feedback, it is desirable that contracts be entered into for the Project
once greater certainty around the likely outcome of the Commonwealth approvals process has been
obtained. Major Projects Canberra does not currently recommend entering into a project for the main works
until greater certainty is achieved around likely Commonwealth planning process outcomes.
It is almost certain that the private sector would not bear substantial planning risk under any contracting
arrangement. Consequently, while planning risks are generally not perceived to be as severe for the
Project when compared to the Stage 2B route alignment, the ACT Government will need to gain greater
certainty on these matters before finalising a proposed delivery model.
The ACT Government proposes to continue discussions with the NCA to understand the planning
requirements for the Project and to determine the level of design required to achieve approval. The
outcome of this process will drive the level of input required from Canberra Metro in the planning process. If
more detailed or broader (outside of the construction area) designs are required there may be a need to
engage Canberra Metro earlier and more extensively in the design process.
In any event, the recommended delivery model to be pursued includes an ‘Early Contractor Involvement’
contract on a sole source basis with Canberra Metro in connection with Stage 2A. This will cover the period
between this Business Case and the submission of a proposal for the main Stage 2A works by Canberra
Metro.
This ‘Early Contractor Involvement’ approach will enable development of Stage 2A to continue while
Canberra Metro prepares its proposal, including the progression of planning approvals. It will also establish
a framework which will facilitate the achievement of a value for money outcome
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Market sounding validation
Market sounding was undertaken for the City to Woden Light Rail project with light rail operators,
constructors and LRV suppliers. While this focused on the entire City to Woden Light Rail alignment, the
key areas considered around augmentation and market capacity remain relevant and can help guide the
commercial structuring for the Project.
The purpose of the market sounding was to:
• Test the market appetite for participating in a tender process for different components of the City to
Woden Light Rail and directly discuss the potential impact that the incumbent consortium may have on
the procurement;
• Understand how the relationship with the incumbent could be managed during a competitive tender
process;
• Receive initial market advice on the technical aspects of City to Woden Light Rail and how the interface
risks with the existing network could be mitigated;
• Inform the development of commercial principles for City to Woden Light Rail; and
• Receive initial industry input on potential packaging and procurement options.
Key discussion points with respect to the delivery model, risks, costs, commercial principles and
procurement process are summarised below.
8.2.8.1 Delivery model
• An important consideration in selecting the appropriate delivery model was the management of the
interface with Canberra Metro who will operate and maintain City to Gungahlin Light Rail for 20 years
under the existing Project Agreement;
• In general, a standalone PPP for an extension, while possible, was not the preferred delivery model
approach for parties other than Canberra Metro, given the significant interface with City to Gungahlin
Light Rail and likely impact on customer experience;
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• Market participants believed that the interface between Canberra Metro and a different O&M provider
for an extension would have significant challenges and multiple operators was not recommended given
the increased network costs caused by duplication of functions (e.g. depots, control systems and
associated overheads); and
• An integrated D&C package was preferred over separate civil works packages to minimise interface and
timing risks.
8.2.8.2 Key risks, costs and commercial principles
• In the event of a separate D&C package, a detailed interface agreement between the O&M and D&C
contractors would be required to ensure that the obligations of both parties are clearly articulated and
agreed;
• To ensure seamless network integration and a consistent customer experience between City to
Gungahlin Light Rail and the extension, design specifications would be required for a number of design
elements, such as systems infrastructure and stops; and
• The JSC inquiry recommended that light rail be wire-free along certain sections of the Stage 2A and
Stage 2B alignment, and the Commonwealth Government agreed with this recommendation. As such,
there is a risk that wire-free running will be a planning condition of the Project. If wire-free running is
required, it may be a constraining factor as there is currently limited local and international wire-free
running experience. All LRV operators included in the market sounding have existing wire-free
capabilities or are in the final stages of developing and deploying these technologies – but not all have
hybrid technology that could run both wire-free and wired technology on the one alignment. Battery and
super capacitor LRV technologies are expected to continue to develop over time. Note: technology is
likely to have advanced materially in the period since this market sounding was undertaken so this view
should be retested with the market if an investment decision is made.
8.2.8.3 Procurement
• Industry participants expressed some interest in possibly bidding for packages in an extension to the
network. However, the industry noted that the level of competitive advantage held by Canberra Metro
for both the D&C and O&M packages is a significant constraint on industry participation and as a result,
a competitive procurement process would need to encourage participation through a range of means
including a transparent shortlisting process and open interaction with the Territory throughout the
procurement process. Informally, certain potential participants have indicated they would not participate
in a procurement process given the competitive advantage held by Canberra Metro and the glut of
infrastructure work in the Australian market at present;
• Regarding the O&M package, there was limited interest from light rail operators noting that an
incumbent exists for City to Gungahlin Light Rail and it was unlikely that a dual operator network would
be feasible;
• D&C market participants indicated a possible interest in considering participation in a competitive D&C
tender. However, this was caveated on the basis that the process was communicated to the market in a
transparent manner and there were adequate controls in place should John Holland and CPB be
participating as part of the procurement team (as members of the Canberra Metro consortium);
• Furthermore, market capacity may be constrained by other significant infrastructure projects which are
expected to be in procurement and construction at the same time as the expansion. Participants
indicated that there are capacity constraints on the east coast and competition for similar projects
whose procurement processes will occur simultaneously with expansion’s development. The massive
number of transport infrastructure projects currently active in Australia is shown in Figure 8-3.
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Figure 8-3: Transport construction projects in Australia113
• Consequently, high risk delivery models with substantial interface risk and incumbent operators are
deemed to be less attractive to the market. This indicates that there could be a real risk of reduced
participation in a competitive procurement setting.
8.3 Recommended delivery model
The recommended delivery model to be pursued in the first instance consists of two components:
• An ‘Early Contractor Involvement’ contract on a sole source basis with Canberra Metro in connection
with Stage 2A. This will cover the period between this Business Case and the submission of a
proposal for the main Stage 2A works by Canberra Metro. This ‘Early Contractor Involvement’
approach will enable development of Stage 2A to continue while Canberra Metro prepares its
proposal. It will also establish a framework which will facilitate the achievement of a value for money
outcome
; and
• Procurement of a contract for the Project’s main works through a sole source negotiation with
Canberra Metro. This will, at a minimum, include an integrated package consisting of the design,
construction, operations and maintenance of the Project. The entry into a contract for the Stage 2A
main works will come at the conclusion of the Stage 2A ‘Early Contractor Involvement’ process.
113 Macromonitor, ‘Australian Construction Outlook – Overview’, https://macromonitor.com.au/australian-construction-outlook-overview/, 2019
decreases with a longer operations period), whole of life costs
(increases with a longer operations period) and Territory flexibility for
current and future stages (decreases with a longer operations period).
Performance relief for City to Gungahlin Light
Rail due to the Project D&C
• Canberra Metro to manage the interface between City to Gungahlin
Light Rail operations and City to Commonwealth Park during
construction and into the operations phase so as to minimise impact
on the City to Gungahlin Light Rail performance; and
• Relief will only be allowed in limited circumstances.
O&M requirements and interface agreement • O&M requirements to be included in any competitively tendered D&C
Briefs for the RFT.
Canberra Metro required to demonstrate
Value for Money to the Territory
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Commercial Principle Approach
Integration with a future Commonwealth Park
to Woden stage
• Canberra Metro to be responsible for whole of corridor integration and
risk – this could be captured in the commercial framework for the City
to Commonwealth Park project;
• Technical future proofing should be accompanied by commercial
future proofing through a robust augmentation regime contemplating
the extension to Woden; and
• Consideration of a process for design integration between City to
Commonwealth Park and the extension to Woden.
8.5 Value for money framework
The Territory intends that a robust and documented framework will govern the procurement process for the
Project to ensure that value for money is achieved.
The value for money framework will contain the following elements:
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9.0 Project governance
9.1 Governance structure
The Project will be procured and delivered by Major Projects Canberra in consultation with other relevant
stakeholders, including the Transport Canberra and City Services Directorate, the Environment, Planning
and Sustainable Development Directorate, and the City Renewal Authority. Once delivered, the
management of the operations of the Project will revert to the Transport Canberra and City Services
Directorate.
It is anticipated that a consistent governance framework will be used to oversee the delivery of Stage 2B to
Woden.
The Project will operate within a governance framework which includes a Light Rail Project Board with
independent members, as well as representation from key ACT Government Directorates.
Within Major Projects Canberra, the Project team will report to the Project Director who will in turn report to
the Chief Projects Officer. Ministerial responsibility for the Project will be with the Minister for Transport and
City Services.
Figure 9-1 provides a high-level overview of the governance structure for the Project. However, these
governance arrangements are subject to future decisions of Cabinet.
Key messages
• The Project will be procured and delivered by Major Projects Canberra in consultation with other relevant stakeholders, including the Transport Canberra and City Services Directorate, the Environmental Planning and Sustainable Development Directorate, and the City Renewal Authority.
• Once delivered, the management of the operations of the Project will revert to Transport Canberra and City Services.
• It is anticipated that a consistent governance framework will be used to oversee the delivery of Stage 2B to Woden.
• Governance arrangements are indicative and subject to change following further consideration by Cabinet.
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Figure 9-1: The Project’s governance structure
9.2 Key roles and responsibilities
Organisational representation
The governance structure developed ensures adequate ACT Government directorate representation
through the Light Rail Project Board which will include independent members. The Project Board will
consist of members from relevant ACT Government directorates including:
1. Chief Minister, Treasury and Economic Development Directorate
2. Transport Canberra and City Services
3. City Renewal Authority
4. Environment, Planning and Sustainable Development Directorate
5. Justice and Community Safety Directorate
In addition to this, the Project Team may also include individuals from the above noted directorates.
Key groups
Each of the key groups involved in the Project have different responsibilities as outlined below.
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Cabinet
Cabinet, or any established Cabinet Subcommittee, is the peak decision-making body for the Project,
including the decision (or otherwise) to proceed with the Project.
Generally, matters to be escalated to this group for approval include:
• Global capital and operational expenditure cost estimates;
• Design, delivery strategy and Business Case;
• Funding and value capture strategy;
• Project objectives and plan;
• Governance Framework;
• Cross-government coordination issues (in circumstances of unresolved issues at the Project Board
level); and
• Risk oversight.
Project Board
The Project Board provides strategic direction and advice to key Project personnel, including the Chief
Projects Officer, Project Director and project team.
Major responsibilities of the Project Board include:
• Strategy formulation;
• Endorsements of approvals to be referred to Cabinet;
• Monitoring the Project Team’s performance;
• Risk oversight;
• Compliance with relevant legislation and the Territory’s policies; and
• Communicating with key strategic stakeholder groups.
Chief Projects Officer
The Chief Projects Officer is accountable for all activities of the Major Projects Canberra Project Team. The
Chief Projects Officer is a key interface point between all key decision makers (including the Project Board
and Minister), and a key interface between the directorate, and community stakeholders.
Project Director
The Project Director, reporting to the Chief Projects Officer, leads the project team and directs and
manages the delivery of the Project to meet the ACT Government’s objectives. The Project Director
represents the project team and is a common link between the Project, the City to Woden Light Rail project
and the existing light rail network. The Project Director’s responsibilities are to:
• Direct and manage the delivery of the Project in accordance with the Project plan to meet the Project
objectives;
• Attend and participate in Project Board meetings;
• Establish Working Group(s);
• Keep the Chief Projects Officer and Project Board informed of key issues and risks;
• Take accountability for the Project’s Business Case and all other key documents; and
• Oversee the Project budget.
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Project Team
The Project Team focuses primarily on the day-to-day management and operations of the Project.
Members are responsible for delivering the Project according to its vision under the direction of the Project
Director. They are involved in the detailed outcomes of the Project. A Probity Advisor will also be
appointed to assist during the procurement process as needed. The project team’s major responsibilities
include:
• Implementing the Project Plan;
• Identifying, discussing and escalating strategically important issues and risks to the Project Director,
Chief Projects Officer and Project Board;
• Managing the preparation of Project Board papers and material; and
• Endorsing the Monthly Report for escalation to the Project Board for approval.
9.3 Benefits Realisation Plan
Noting the findings and recommendations of the Auditor-General’s performance audit into Light Rail Stage
1,114 a Benefits Realisation Plan is proposed to be developed for the Project. The Benefits Realisation Plan
will be managed by ACT Treasury in consideration of the existing City to Gungahlin Light Rail Benefits
Realisation Plan to ensure that a coordinated and consistent approach is adopted.
The Project Benefits Realisation Plan will include the following activities:
• The Project Board will monitor and consider progress throughout the Project lifecycle, or as requested
by the Board or Cabinet;
• ACT Treasury will be responsible for collating reports on benefits realisation for the Project Board and
providing feedback to responsible agencies on the outcomes of the Project Board’s consideration of
reports;
• Responsible agencies will provide the following information on both business changes and
performance metrics:
o Progress on business changes;
o Progress on benefits realisation; and
o Any updates or revisions required to the Benefits Realisation Plan; and
• Updates or revisions to the Benefits Realisation Plan can be made at any time with agreement of the
Project Board.
114 ACT Audit Office, ‘Initiation of the Light Rail Project: Report No. 5 / 2016’, https://www.audit.act.gov.au/__data/assets/pdf_file/0007/1179943/Report-No.-5-of-2016-Initiation-of-the-Light-Rail-Project.pdf, 2016
As a city-shaping project for Canberra, the Project will
be of interest to all Canberrans – whether they use the
light rail network every day, or only occasionally to
attend and/or organise special events, such as at
Canberra Theatre or in Commonwealth Park. The ACT
Government will actively engage with all Canberrans
to ensure that the community’s views are taken into
consideration during the Project’s phases, including
design development, construction and operations.
A wide range of customers will use the Canberra light
rail network from the City to Commonwealth Park
including shoppers, young travellers, tertiary students,
the elderly, night-time travellers, peak commuters,
tourists, business travellers and event attendees.
The ACT Government has adopted a ‘customer centric
approach’ to provide Canberrans with an attractive,
convenient, efficient and reliable integrated public
transport system.
Key messages
• The Project will be delivered in a collaborative and consultative way. Given the Project will be co-delivered with the raising of London Circuit (if approved) and noting the range of other proximate projects in the city, coordination of engagement activities will occur with the Environmental, Planning and Sustainable Development Directorate and the City Renewal Authority.
• Consultation has already occurred with the community and key stakeholders on the light rail network and the extension of light rail south to Woden, though substantial ongoing consultation will be required through the Project’s procurement and delivery phase. Consultation will focus on the extension to Commonwealth Park as the first component of light rail to be delivered between the City and Woden.
• The communications and consultation approach outlined in this Chapter is founded on the principle that regular engagement will deliver key Project benefits. Further, the approach supports the ACT Government priorities for “enhancing liveability and social inclusion” and “suburban renewal and better transport”.
• The Project has a significant number of stakeholders ranging from the Canberra community, Commonwealth agencies and commercial organisations, through to small businesses, residents, unions and public transport customers. A tailored communications and stakeholder engagement approach will be critical to the Project’s success, adopting the right mix of engagement techniques across both the delivery and operations phases.
• Given the large number of transport, land development and urban renewal projects in planning or delivery around the route alignment, coordination, collaboration and integration of all stakeholder and community engagement activities is critical to ensure consistent and clear messaging. It may also produce efficiencies for the ACT Government in the delivery of communications activities.
Key issues for stakeholder engagement
Addressing the following key issues will be vital to the ACT
Government’s stakeholder engagement strategy:
• Close consultation with Canberrans, particularly those that live, work or study along the corridor in New Acton and City West. Examples include local business patrons, public sector and private employees, and ANU students.
• Internal consultation within ACT Government to maximise synergies with other projects, such as the Acton Waterfront and City Hill development plans;
• Collaboration with Government stakeholders to manage traffic impacts during the Project’s development, particularly in light of the large number of projects planned along the route alignment, and ensuring the community is advised of any proposed road closures or diversions;
• Keeping Canberrans informed of progress towards the further extension from Commonwealth Park to Woden;
• Ongoing engagement with Canberra Metro to ensure that the ACT Government’s customer objectives are met for the light rail network; and
• Maintaining a dialogue with the NCA, particularly given Works Approvals will be required as the route traverses NCA ‘Designated Area’.
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Accordingly, the Project is guided by the same customer principles as those of the City to Gungahlin Light
Rail:
• Simplicity: a simple to understand, use, find and interpret service;
• Convenience: a convenient service that offers suitable hours of operation, destinations that make
sense, links to other modes of transport, accessibility and bike transport;
• Smart: smart access to information about my journey time and service, that is intuitive and easy to
stay connected;
• Seamless: a seamless experience between the start of my journey through my destination and
across the whole light rail network; and
• Modern: a service that is modern, professional and contributes to Canberra’s positive image.
These customer principles will underpin the operation of the light rail network, supporting broader public
transport customer objectives such as reliability, safety, personal security, frequency and efficient journey
time.
Establishing good relationships with stakeholders, customers and the community will provide opportunities
for Canberrans to have input into shaping key aspects of the Project and to understand its benefits, both in
terms of improved public transport accessibility and its contribution to urban revitalisation.
External stakeholders
The external stakeholder landscape is diverse and broad. For instance, between 8,000 and 14,000
stakeholders are estimated to be directly impacted during the construction phases of Stages 2A and 2B –
inclusive of businesses, residents and commuters. In addition to the local community, key external
stakeholder groups for the Project include:
• Community councils and resident associations;
• Local businesses;
• Unions;
• Community groups and peak organisations;
• Event organisers and tourist groups;
• Regulatory and approval authorities;
• Educational institutions, including the Australian National University; and
• The Commonwealth Government and its agencies, including the NCA. The importance of
collaboration with the Commonwealth Government, including the NCA, cannot be overstated.
To address the views of the external stakeholder audience, a Community Engagement Strategy will be
developed for the Project to ensure that the Territory’s consultation objectives are achieved.
Given the broad range of stakeholders likely to be interested and / or impacted by the Project, an
assessment of the appropriate engagement strategy for each phase of consultation will be undertaken. It is
recognised that stakeholders and their interests will vary at different phases of the Project’s development.
Some of the stakeholders will maintain an interest throughout all phases of planning, construction and
operation, while others may only have an interest at specific times.
Importantly, the Community Engagement Strategy will set out a detailed account of the proposed
engagement and reporting methods for all external stakeholders – arranged by demographic group.
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Internal stakeholders
There are a wide range of internal stakeholders for the Project, including Cabinet and many other ACT
Government Directorates and agencies such as:
• Chief Minister, Treasury and Economic Development Directorate;
• Major Projects Canberra;
• Transport Canberra and City Services;
• City Renewal Authority;
• Environment, Planning and Sustainable Development Directorate; and
• Education and Training Directorate
Internally within the ACT Government, the Project either impacts or interests every ACT Government
Directorate. Accordingly, Cabinet and all ACT Government Directorates have been consulted in the
development of this Business Case, and in relation to the Project more generally.
The ACT Government has ongoing forums through which it will maintain a continuous dialogue between
internal stakeholders throughout the Project’s development, including the Project Board and other formal
and informal arrangements.
10.2 Communication and consultation
Communication objectives
The communications approach applied will be multifaceted, open and inclusive. Major Projects Canberra
will be responsible for delivering all communications and engagement activities during the procurement and
delivery phase. Transport Canberra and City Services will have responsibility for communications activities
during the ongoing operational phase.
The overarching communications and engagement objective is:
The communication objectives for the Project are as follows:
• To effectively engage with ACT Government stakeholders, ensuring that they are informed and
involved as the Project develops;
• To develop the ACT Government’s capacity and capability to undertake effective communication and
engagement activities for major transport infrastructure projects;
• To actively create momentum for the Project with key stakeholders and the broader Canberra
community through accessible, informative, innovative and clear communications and engagement
activities; and
• To provide effective communications and engagement support that strongly positions the Project at key
decision-making points and during the formal approval process period.
Communications approach
The communications approach has been informed through extensive internal consultation and through the
experiences from the delivery of City to Gungahlin Light Rail, consultation on the new bus network, internal
“To effectively gather, acknowledge, analyse and mitigate community and stakeholder insights, views,
experiences and opinions related to the Project”
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precinct review processes, piloting of engagement methods in 2018, research by the Next Engagement
Project115 and learnings from other jurisdictions where major infrastructure projects are being delivered.
The objectives outlined in Section 10.2.1 align with the ACT Government’s commitment to engaging
effectively with its citizens as outlined in Engaging Canberrans: A guide to community engagement. The
Guide identifies five key principles to inform engagement practice:
1. Careful Planning and Preparation – through adequate and inclusive planning, ensure that the
design, organisation and convening of the process serve both a clearly designed purpose and the
needs of participants. Tailor the approach to fit the target group. Integrate online engagement and
other social media with traditional methods;
2. Inclusion and Demographic Diversity – equitably incorporate a diversity of people, voices, ideas and
information to lay the groundwork for quality outcomes and demographic legitimacy;
3. Collaboration and Shared Purpose – support and encourage participants, government and
community groups, and others to work together to advance engagement goals;
4. Openness and Learning – help all involved to listen to each other, explore new ideas unconstrained
by predetermined outcomes, learn and apply information in ways that generate new options, and
rigorously evaluate community engagement activities for effectiveness; and
5. Transparency and Trust – be clear and open about the process and its objectives, and how it will
feed into decisions or government actions, provide a community record of the organisers, sponsors,
outcomes and a range of views and ideas expressed, and feedback to participants.
Given the large number of transport, land development and urban renewal projects in planning or delivery
around the route alignment, coordination, collaboration and integration of all stakeholder and community
engagement activities is critical to ensure consistent and clear messaging. It may also produce efficiencies
for the ACT Government in the delivery of communications activities.
A Communications and Engagement Team will oversee the implementation of the Community Engagement
Strategy. This team will be responsible for the overall management and coordination of community
information, involvement and face-to-face interaction.
Consultation methods
The community will be able to provide ongoing feedback throughout the Project’s development. A variety of
different consultation methods will be used, including:
• Face-to-face engagement activities – shopfront walks, drop in sessions, market stalls, roundtable
meetings and community presentations;
• Market research, advertising and mass communications activities – brochures and newsletters
distributed at market stalls and the Your Say website;
• Social media – Twitter and Facebook;
• Website and collateral development – Your Say website and surveys; and
• Media and public relations activities described.
A wide range of internal consultation methods will also be utilised for the Project. Methods include
Ministerial and Executive briefings; staff awareness tours; working groups; workshops; intranet articles and
whole-of-government messages.
115 The Next Engagement Project was undertaken by the Australian National University
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Consultation undertaken to date
In October 2015, the ACT Government released its Light Rail Plan in which it outlined seven new route
alignments to be built over a 25 year period, including the City to Woden corridor. The Project, from Alinga
Street to Commonwealth Park, represents the northern portion of the corridor and the initial stage in
extending light rail to Woden. The public were invited to submit comments on the plan by December 2015,
helping to select the City to Woden route as the next stage of the network to be developed.
Initial consultation on City to Woden Light Rail’s design principles, landscape strategy, route alignment,
stop locations and items of community or environmental interest occurred in May and June 2017. The
community consultation resulted in more than 10,000 individual interactions, ranging from seeking
information from the website to in-depth stakeholder discussions. The potential stops in the Project, as part
of the full route alignment, were considered during these consultations and have informed the Project’s
ongoing development.
A summary of the activity after the six-week public consultation period is provided in the table below.
Table 10-1: Summary of six-week consultation activity
Consultation activity Interactions
Face-to-face consultation Spoke to 587 individuals
Shopfront walks 7 completed
Roundtable meetings (Community and Business) 3 held with 33 attendees
Presentations to Community Councils/Events 4 held with 146 attendees
Drop in sessions 4 held with 24 attendees
Market stalls 7 held with 384 individual consultations
Brochures and Newsletters distributed 2,990 distributed
Visits to the Your Say website 4,772 visits
Online surveys 1,364 completed
E-mails 150 e-mails sent to organisations and schools
Verbate 1 video contribution
Online interaction map 1,704 visits and 339 contributions
Visioner questionnaire 71 contributions
Twitter 21 tweets with 17,016 impressions
Facebook posts 5 with 22 shares and a reach of 22,381
Media mentions (print, online, radio and television) 63
Written feedback submissions Received 1,796 items of written feedback
On 10 May 2018, the JSC agreed to inquire and report on Commonwealth and Parliamentary approvals for
the City to Woden Light Rail. The JSC accepted written submissions, addressing one or more of the Terms
of Reference, which are outlined in Section 2.4.3. The JSC also conducted public hearings on 21 June
2018, 28 June 2018 and 16 August 2018, which heard from 25 witnesses, to gather evidence from
stakeholders on one or more of the Terms of Reference.
The JSC received 43 submissions, 11 supplementary submissions and two exhibits. The submissions
made included those from:
• Members of the public;
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• Commonwealth Government (Department of Infrastructure, Regional Development and Cities,
Department of Parliamentary Services, Department of Environment and Energy, NCA, Productivity
Commission);
• Local Community Councils and resident’s groups (Inner South Canberra Community Council,
Kingston and Barton Residents’ Group);
• Other organisations (Australasian Railway Association, Canberra Business Chamber, University of
Canberra, Australian Institute of Architects, Smart Canberra Transport, Lake Burley Griffin
Guardians, Public Transport Association of Canberra, Property Council of Australia, Planning
Institute of Australia); and
• ACT Government
The JSC’s report presented several recommendations for City to Woden Light Rail which were agreed, or
agreed in principle by the Commonwealth Government. Where relevant, these have informed the
development of the Project as outlined in Section 2.4.3.
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11.0 Advisor engagement plan
11.1 Proposed advisor roles
A variety of external advisors are anticipated to be appointed to assist in the development of various
elements of the Project. Transport Canberra and City Services has previously worked with Shared Services
Procurement (SSP) on advisor engagement matters in accordance with relevant procurement guidelines.
Transport Canberra and City Services appointed a series of advisors to assist in the preparation of this
Business Case and provide advice to support Cabinet’s deliberations on whether to proceed with the
Project. These advisors include:
• Commercial and economics;
• Legal and probity;
• Technical;
• Cost estimation;
• Communications;
• Strategic, meso and micro transport modelling; and
• Public transport integration.
Ongoing engagement of advisors will be dependent upon future ACT Government decisions regarding the
progression (or otherwise) of the Project.
A list of key external advisory mandates that may be required for the Project are outlined in Table 11-1. It is
noted that this list of advisors is indicative and is likely to change as the Project progresses from the
Business Case stage, through to procurement, construction and operations.
Key external advisors
Table 11-1: Key external advisors
Key advisory mandates Potential scope of engagement
Strategic governance,
Project management and
advisory support
Project management services may include:
• Planning and scheduling for major infrastructure and complex engineering
procurements;
• Provision of expert assistance on Project risk assessment, Project controls and
assurance;
• Advice on the preparation of documentation and / or review and clearance
processes; and
Key messages
• A variety of external advisors have been appointed in accordance with ACT Government processes to assist the Territory to develop the Project.
• The expertise and support required from advisors will change as the Project progresses and the Territory’s needs change.
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Key advisory mandates Potential scope of engagement
• Governance and construction surveillance services, including bid transactions
processes and ICT security and data room management.
Commercial and financial Commercial and financial services may include:
• Commercial advice; and
• Project procurement and negotiation assistance.
Technical engineering,
design and planning
Technical engineering, design and planning advisory services may include:
• Detailed technical design of infrastructure and operating requirements;
• Urban design, planning, architecture and landscaping;
• Utilities location and geotechnical surveys; and
• Environmental investigations and studies and arboriculture.
Legal Legal advisory services may include:
• Project procurement assistance, including drafting and negotiation of Project
documentation;
• Legislative requirements such as planning and environmental approvals; and
• Probity advice.
Cost estimating Cost estimation advice may include the provision of cost estimation works for the
Project’s capital and operating costs.
Communications,
consultation and strategic
relations
Communications, consultation and strategic relations services may include:
• Community engagement planning and ongoing consultation on various Project
aspects;
• Preparation of Project communications materials and reports; and
• Advice, coordination and advocacy with respect to the Commonwealth
Government, its departments, agencies and authorities.
Operations planning and
management
Operations planning and management advisory services may include:
• Rail systems requirements;
• Systems implementation and integration;
• Rolling stock and systems procurement and maintenance;
• Network operations, planning and crewing; and
• Stop and depot management.
If the ACT Government proceeds with the Project, additional specialist advisory services may be required
in addition to those outlined in the table above.
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12.0 Timeline
12.1 Project timeline
Overview
Key indicative Project milestones (assuming London Circuit is raised) are outlined in Table 12-1. These
indicative milestones are subject to substantial change, particularly if (i) complications arise in raising
London Circuit (if approved) (ii) planning approvals necessitate wire-free running, or (iii) unexpected
Commonwealth Government impediments arise.
Table 12-1: Key indicative Project milestones (assuming London Circuit is raised)
Milestone Anticipated Timeline
Approvals processes (Works Approval, Development
Approval and environmental)
Mid-2019 – mid-2020
Early contractor involvement process Mid-2019 – mid-2020
Main package contract award Mid-2020
Design and construction Mid-2020 – 2023 / 2024
Commissioning Late 2023 / 2024
Operations commencement 2024
Stage 2B ongoing design and planning activities 2019 – until the time of Commonwealth approval
Approvals
The Project will require a series of approvals in order to proceed to the construction phase. These include:
• Environmental approval: a draft Environmental Impact Statement (EIS) will be required;
• Works Approval: similar to City to Gungahlin Light Rail, the route alignment traverses
‘Designated Areas’ and as such will require Works Approval from the NCA; and
• Development Approval: in line with legislative requirements, Development Approval will be
required from EPSDD
These approvals will be progressed in line with the timeline outlined above.
Key messages
• All dates listed in this Business Case are indicative and subject to a number of factors, including
Cabinet decisions regarding this Business Case.
• Contract award for the main works design and construction activities anticipated to occur in mid 2020.
• The Project is currently expected be operational in 2024.
• Indicative timing described herein is based upon the definition design and assumptions on construction methodology.
• Actual timing shall be subject to the length of the approvals process, completion of the procurement process and the realisation (or otherwise) of planning and other risks, and Government decisions on related projects.
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Procurement Phase
The procurement phase timelines outlined above are based on the delivery of the Project through a sole
source negotiation with Canberra Metro.
Delivery phase
The overall duration of the construction phase is indicatively expected to be approximately three and a half
to four years in duration for the main works package from contract award to the commencement of
operations. This leads to an expected start date for operations in 2024.
This estimate is based on the assumption that the London Circuit and Commonwealth Avenue Project
proceeds (although approval for that project is sought as part of a separate Business Case).
Timeline flexibility and constraints
The timeline outlined above may be impacted by a number of factors, including:
• Government decisions regarding this Business Case and the delivery of the Project more
generally;
• Delays in planning and environmental approvals;
• Government decisions and construction timing on other related projects, such as the raising of
London Circuit at Commonwealth Avenue; and
• All other risk factors identified elsewhere in this Business Case.
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Assumptions book
Economic values
Valuation year and discount rate
Table 2 Discount and inflation rates
Parameter Value
Discount rate 7.0%
Inflation 2.5%
Table 3 Appraisal parameters
Parameter Year
First year of the appraisal period 2019 financial year
Dollar terms 2019 financial year
Operation 2024 financial year as per construction profile
Appraisal period 30 years
Appraisal end year 2054 financial year for Stage 2A analysis and 2055
financial year for City to Woden analysis
Annualisation factor volume – roads 345 days per year
Annualisation factor volume – public transport 300 days per year
Annualisation factor cost – car 336 per year
Annualisation factor cost – public transport 292 per year
Escalation year
Table 4 Escalation years
Parameter Year
Travel time savings – public transport 2018
Travel time savings – cars 2018
Travel time savings – light commercial vehicles 2018
Travel time savings – heavy commercial vehicles 2018
Reliability benefits – all types 2018
Vehicle operating costs – resource 2007
Vehicle operating costs – fuel 2008
Health benefits 2018
Accident – car 2018
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Parameter Year
Accident – bus 2018
Public transport revenue 2008
Externalities – cars 2018
Externalities – public transport 2018
Wider economic impacts 2017
Infrastructure cost savings 2015
Bus operating cost savings 2018
Travel time
Table 5 Travel modes (assumed occupancy per vehicle of 1)
Main mode 2018 value ($)
Car 16.89 per person
Light commercial vehicle 29.21 per person
Heavy commercial vehicle 58.17 per person
Table 6 Value of time per person hour
Parameter 2018 value ($)
Business value of time 54.78
Private value of time 16.89
Vehicle operating costs
Table 7 Public transport operating costs
Bus 2018
Cost per bus km $1.65
Cost per bus hour $53.32
Assumed average speed 30 km/h
Externality impacts
Table 8 Externality benefits (2018 value, cents per km)
Main mode
Car
Light
commercial
vehicles
Heavy
commercial
vehicles
Bus Light rail
Air pollution 3.30 8.02 28.41 37.15 40.63
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Main mode
Car
Light
commercial
vehicles
Heavy
commercial
vehicles
Bus Light rail
Greenhouse emissions 2.60 2.50 6.33 15.31 32.07
Noise 1.08 1.37 4.74 2.60 -
Water 0.50 1.20 4.26 5.57 -
Nature and landscape 0.06 0.89 0.46 0.17 -
Urban separation 0.76 1.31 3.16 2.46 -
Total 8.30 15.28 47.37 63.26 72.70
Accident
Table 9 Accident cost ($/vehicle km travelled)
Accident cost 2018 value
Bus 0.01
Health benefits
Table 10 Health benefit of active transport per km
Main mode 2018 value
Walking 1.79
Cycling 1.19
Table 11 Average km per trip
Main mode 2016 value
Walk access to walk egress 1.00
Car access to walk egress 0.50
Walk access to car egress 0.50
Light rail amenity benefit
Table 12 Light rail amenity improvement
Improvement value Value
Improvement value 10%
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Infrastructure efficiency benefits
Table 13 Infrastructure efficiency benefits
Density $/dwelling
Low density 110,578.00
Medium density 82,631.00
High density 54,684.00
Financial analysis cost assumptions
Key assumptions
Table 15 Key assumptions
Cashflow component Source and notes
Model period
Approximately 18 years, with an approximate 3 year and a half year design
and construction period, and an approximate 14 and a half year operating
period
Other assumptions • Consumer Price Index (CPI) at 2.50%